Amazon will cut hundreds of jobs at Prime Video, just weeks before it introduces ads to...

[midian182]

The big picture: Amazon, a company that generated $9.9 billion in profit last quarter and is about to introduce ads to all Prime Video subscribers unless they pay extra to remove them, has just confirmed it will be laying off hundreds of employees across its Prime Video and MGM Studios divisions. The news come on the same day that Amazon said it would be cutting 35% of the workforce, or 500 jobs, from subsidiary Twitch.

No tech company cut as many jobs as Amazon last year. The firm laid off 27,000 workers, almost three times the number of people Facebook and Microsoft let go, and more than double the number of jobs Google cut.

Mike Hopkins, senior vice-president of Prime Video and Amazon MGM Studios, told employees, "We've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact."

Amazon's announcement came on the same day that Twitch CEO Dan Clancy told staff that 500 employees would be let go from the company despite its efforts to cut costs over the last year. He said it was clear that Twitch was larger than it needed to be based on more realistic predictions for its future growth.

Mass layoffs are always unwelcome news, but Amazon's feel especially jarring when Prime Video is set to introduce ads to its movies and TV shows on January 29. Customers will have to endure up to four ad breaks per hour unless they hand over $2.99 per month on top of their regular subscription payment.

Amazon has spent huge amounts on its media enterprises in recent years. In addition to the $8.5 billion deal for MGM, it spent $465 million on the first Season of The Lord of the Rings: The Rings of Power, making it the most expensive show ever made.

Amazon, which has a market cap of $1.59 trillion, faced plenty of criticism last month following reports that one of its warehouses in New York posted a flier suggesting workers write to the company mascot, Peccy, if they or someone they knew were facing financial hardships during the holiday season.

Permalink to story.

https://www.techspot.com/news/101485-amazon-announces-hundreds-job-cuts-prime-video-weeks.html

 

[Neatfeatguy]

Thankfully I don't support Amazon Prime. I rarely purchase anything off Amazon, it is my last resort. I'd much rather spend an extra 10% on something and get it locally than get it through Amazon.

 

[LemmingO]

This will look good on the P&L sheet. They can later manipulate investors by claiming their decision to introduce ads led to a sharp increase in profits (not revenues).

 

[jpvalverde85]

Payments to execs are also larger than needed and 99% of their work can be replaced with AI.

 

[Greggs]

Adding ads was the final straw in cancelling Prime. After hiking the price and cutting the benefits, what's the point? Amazon is much less useful than in the past. Fire TV is a mess. Kindle Fire is junk. The company is a disaster.

 

[yRaz]

I'm honestly getting ready to go back to pirating. I pay for services and then I can only get their maximum quality through using their "app." I hate that word so much, I remember back in 2008 when the word started to gain traction that it was heavily mocked. I recently switched pharmacies because I could no longer call in my scripts, everything had to be done through their app. Nearly all the fast food deals in my area are only available through their app.

I'm done with this app nonsense. It's one thing if it is optional but it's another when the kids working there look at you like you're dumb when you don't want to use it. Then the one McDonald's I frequently grab breakfast at(McDonald's has amazing coffee, fight me) stopped accepting cash for awhile.

But I hate how even if you're paying for a service you can't use it how you want to because they want you to use their app. I remember wanted to watch The Expanse so I bought prime but I couldn't watch it in 4kHDR unless I downloaded the Amazon "app" throught my "smart" tv. I remember having to run a seperate ethernet line to my TV just to watch the Expanse. I don't allow WiFi in the house.

 

[Lowhangingfruit]

The stats here need a bit more context.

> more than double the number of jobs Google cut.

Amazon is orders of magnitude larger than Google, so proportionally speaking that is not a fair comparison.

 

[Theinsanegamer]

The stats here need a bit more context.

> more than double the number of jobs Google cut.

Amazon is orders of magnitude larger than Google, so proportionally speaking that is not a fair comparison.

But that doesnt support the narrative. Like many, I'd bet these "cuts" are mostly HR, marketing, and DEI related as opposed to anything production wise, AKA the oxygen thieves that add nothing to the company. Same as we have seen at many companies this year.

 

[mgilbert]

The monster Amazon is my absolute last resort for any product or service I buy. I much prefer smaller businesses, locally when possible, because they actually appreciate me as a customer.

 

[p51d007]

"Streaming will replace cable" was the cry.
Now, you need 3,409 streaming services to watch what you did on cable per se, and
the price is about the same.
When netflix was the king of streaming, you pretty much only needed netflix.
Then the studios caught on and started pulling THEIR content from Netflix and started
their own streaming services.
Shoot, might as well go back to cable!

 

[GoldenGoat]

Bezos was an great entrepreneur, but then turned it over to the wolves. This is only the beginning...