Amazon is implementing substantial corporate layoffs, cutting over 14,000 jobs, with a notable impact on its video game division. A Bloomberg report indicates that these job reductions are concentrated in Amazon`s Irvine and San Diego offices, specifically targeting the central publishing unit and leading to a reduction in work on major big-budget games and Massively Multiplayer Online (MMO) titles.
Steve Boom, Amazon`s Vice President of Audio, Twitch, and Games, acknowledged the difficult nature of these decisions. He stated that despite previous successes in internal AAA game development and publishing, Amazon Game Studios would significantly scale back its first-party AAA game development, particularly in the MMO sector. This includes substantial staff reductions across its Irvine and San Diego studios, as well as the central publishing team.
Amazon`s notable gaming ventures include the MMO RPGs “Lost Ark” and “New World.” “New World,” launched in 2021, marked the company`s initial entry into game development and is now available on consoles following its PC release. “Lost Ark,” released in 2022 and published by Amazon, remains a PC-exclusive title.
The company had reportedly been working on other major titles, such as untitled “Lord of the Rings” and “Tomb Raider” MMOs. Given the recent restructuring, it is highly probable that these projects have now been shelved.
These recent cutbacks follow a previous round of layoffs two years ago, when approximately 100 employees were let go from the gaming division. This contrasts with earlier statements from Amazon Games VP Christoph Hartmann in April 2023, who had assured continued investment in internal development and team growth.