Original story:
Cuts across the gaming industry continue to unfold as big tech shifts. The latest company to see major job cuts is Amazon, with the company confirming on Tuesday that it is laying off 14,000 employees.
An unknown portion of these job cuts is falling on the company's gaming division, with Bloomberg reporting that the cuts are primarily taking place at Amazon Games' Irvine and San Diego studios, as well as the publishing division.
In a statement reviewed by Bloomberg, Steve Boom, vice president of audio, Twitch, and games, says that the company is “leaning into the things that Amazon does best," while pulling back much of its internal game development, especially for larger MMO (massively multiplayer online) titles.
Why are the layoffs happening? Broadly, Amazon claims it is focusing on a leaner structure and accomplishing more through the use of generative AI.
"Some may ask why we’re reducing roles when the company is performing well. Across our businesses, we're delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. What we need to remember is that the world is changing quickly," says Beth Galetti, senior vice president of people experience and technology at Amazon.
"This generation of AI is the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business."
