The memo further reveals that Amazon is also cutting jobs at Prime Video and MGM Studios, where "several hundreds" of employees will be laid off.
The Information reported on the layoffs.

The reductions were made public in an email statement by Senior Vice President Mike Hopkins, stating the cuts are "because we're looking to either reduce or eliminate investments in certain areas, while boosting our investment and focus in content and product initiatives with the highest impact.".

Amazon is already mailing those workers in the United States. By the end of this week, it will contact most other regions with a package of severance pay, transition benefits, and career resources outside the company.

From focusing on initiatives we can have confidence will drive impact to continued investments in programming, marketing, and product, our business is well-positioned for an even brighter future," said Hopkins.

Amazon bought MGM for $8.5 billion in 2022, and about one year later, Amazon MGM Studios Distribution was launched for licensing Amazon Originals and other titles to streaming services and cable companies to earn additional revenue.

This is the latest round of layoffs at Amazon, coming as part of a staggering list of cuts in 2023, including hundreds at the Alexa division, plus over 180 roles inside the gaming sector of the business. Thousands more have lost jobs across the company, specifically within its Amazon Stores businesses, its AWS cloud unit, and advertising arm. Amazon has cut 27,000 jobs at the end of 2022 and throughout 2023, a number that represents 8% of its corporate workforce. It is the largest layoff in the tech giant's history.

The cuts come weeks before Prime Video intends to display ads on the streaming service. Prime customers who already pay $14.99 per month for the service will have to shell out an extra $3 per month if they want the ads removed.