Amazon Stock Is Trading Higher - What's Going On?

Amazon.Com, Inc AMZN stock is trading higher amid reports of the company implementing significant layoffs at Prime Video and Amazon MGM Studios, affecting "several hundred" employees. 

Mike Hopkins, the head of Amazon's entertainment division, communicated the decision in an email to staff, emphasizing the difficulty of the choice and expressing gratitude for the contributions of the departing employees. 

Amazon is offering support packages, including separation payments, transitional benefits, and job placement assistance, to those affected by the layoffs, the Variety reports.

Hopkins informed the team that it would promptly complete the notifications for America's staff. At the same time, it will notify employees in most other regions by the end of the week. 

Also Read: Job Cuts Hit Amazon Music's Editorial Team as Company Sharpens Focus on Exclusive Content

The layoffs are part of Amazon's strategy to prioritize investments and focus on content and product initiatives that significantly impact customers. 

Hopkins noted that the entertainment industry is evolving rapidly, necessitating a realignment of assets for the long-term success of Prime Video and Amazon MGM Studios.

Despite the cuts, Hopkins reassured the team that Amazon's commitment to delivering quality movies, TV shows, and live sports through Prime Video remains strong. 

He highlighted the importance of Prime Video as a critical benefit for Prime members and a popular entertainment destination globally. 

The email concluded with an optimistic outlook as Amazon invests in programming, marketing, and product development to enhance its entertainment offerings.

Amazon's Twitch looks to lay off around 35% of its workforce, roughly 500 employees. This principal workforce reduction at the renowned live-streaming platform follows a period marked by significant executive departures and persistent financial challenges. 

Despite leveraging Amazon's infrastructure, Twitch faces substantial operational costs, contributing to its lack of profitability, reflected by the platform's decision to shut down operations in South Korea.

These dismissals are distinct from the company's record job cuts initiated in 2023, which eliminated 27,000 roles.
 

Amazon stock gained over 70% last year versus the broader index SPDR S&P 500 SPY at 22%.

Price Action: AMZN shares are trading higher by 1.60% at $153.80 on the last check Wednesday.

Also Read: Amazon Challenges Apple and Google with New Cross-Platform Video Streaming Feature

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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