The tech giant, which owns the game streaming platform Twitch, has also decided to shut down its own channel on Twitch due to difficulties in gaining popularity.
These job cuts add to a series of layoffs in the gaming industry in 2023, which has seen approximately 6,500 job losses, despite the release of successful games from popular franchises such as Zelda, Spider-Man, and Mario.
Other gaming companies, including Epic Games (maker of Fortnite), Ubisoft Montreal (developer of Assassin’s Creed), and Niantic (creator of Pokemon Go), have also announced layoffs in recent months.
Amazon Games was established in 2012 with a focus on mobile game development but later expanded into larger titles such as New World and Lost Ark. In 2022, the company revealed plans to publish a new single-player game based on the Tomb Raider franchise, and in May, it announced the development of a game based on Lord of the Rings.
Amazon Games Vice President Christoph Hartmann explained in an email to staff that the job cuts were part of a restructuring effort aimed at allocating resources more effectively. However, he also noted that the company was actively recruiting for other positions within its gaming division.
The job losses in the gaming industry are partly attributed to the rapid expansion and mass hiring that took place at the start of the COVID-19 pandemic in 2020. As people turned to video games for entertainment and social interaction during lockdowns, the industry experienced significant growth, resulting in the creation of new teams and studios. However, the situation has evolved, leading to a recalibration of resources and staffing levels in some gaming companies.
