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Amazon announced Monday it would cut more than 180 jobs in its Amazon Games division as it refocuses its efforts on Prime Gaming, according to an internal company memo seen by CNBC.
The company will close its Game Growth and Crown Channel initiatives as part of the restructuring. Now Amazon will focus on upcoming releases like “Throne and Liberty” and “Blue Protocol” as well as future initiatives like the games “Tomb Raider” and “The Lord of the Rings,” said Christoph Hartmann, vice president of Amazon Games, he 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 is not a quick decision by the leadership team, but the result of extensive reflection and roadmaps for our future.”
Amazon shares fell less than 1% on Monday.
Amazon’s latest job cuts come as CEO Andy Jassy took cost-cutting measures last year as the company struggled with 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 has also frozen corporate hiring, and Jassy has sought to reduce expenses in units across the company.
In October, Amazon reported third-quarter earnings that suggested cost cuts were paying off. The company’s third-quarter revenue rose 13% to $143.1 billion, while net income more than tripled to $9.9 billion from $2.9 billion a year earlier.
Hartmann wrote that after further evaluating 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,” the memo said.
—CNBC’s Annie Palmer contributed to this report.
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Source : www.cnbc.com