Amazon cuts more than 180 jobs in gaming division
- Amazon is cutting more than 180 jobs in its Amazon Games division, shutting down parts of the business that focus on streaming and supporting third-party games.
- The company will close its Game Growth and Crown Channel initiatives as part of the restructuring.
- "This isn't a decision the leadership team came to quickly; it was the result of extensive considerations and road mapping for our future," Christoph Hartmann, vice president of Amazon Games, wrote in a memo.
Amazon on Monday announced it will cut more than 180 jobs in its Amazon Games division, shutting down parts of the business that focus on streaming and supporting third-party games and putting more of an emphasis on developing its own titles, according to an internal company memo viewed by CNBC.
The company will close its Game Growth and Crown Channel initiatives as part of the restructuring. Now, Amazon will focus on upcoming launches such as "Throne and Liberty" and "Blue Protocol," as well as future initiatives such as "Tomb Raider" and "The Lord of the Rings" games, Christoph Hartmann, vice president of Amazon Games, wrote in the memo to employees.
"I know this is difficult news and that the impact will be felt widely," Hartmann wrote. "It never feels good to say goodbye to colleagues. This isn't a decision the leadership team came to quickly; it was the result of extensive considerations and road mapping for our future."
Shares of Amazon closed down less than 1% Monday.
The latest job cuts at Amazon come as CEO Andy Jassy has been in cost-cutting mode over the past year as the company has battled high interest rates and inflation. As a result, Amazon has carried out the largest layoffs in its history, cutting 27,000 jobs since last fall. The company also froze corporate hiring, and Jassy has looked to trim expenses in units across the company.
In October, Amazon reported third-quarter earnings that suggested its cost cutting has been paying off. The company's revenue rose 13% to $143.1 billion in the third quarter, while net income more than tripled to $9.9 billion from $2.9 billion a year earlier.
Hartmann wrote that after further evaluation of the Amazon Games business, the company decided it needed to focus its efforts and resources "to deliver great games to players now and in the future," according to the memo.
— CNBC's Annie Palmer contributed to this report.
Don't miss these stories from CNBC PRO:
- Warren Buffett has been selling stocks including Chevron and hoarding a record level of cash
- Bernstein says to buy these crypto stocks to play the expected bitcoin ETF and halving
- Bank of America says there are two things that will drive the next bull run in stocks
- The market just triggered a rare signal that has meant higher returns a year later 100% of the time