Amazon has officially announced a significant reduction in its global workforce, cutting “approximately 14,000 roles,” including considerable layoffs within its expanding video game division.
According to a memo obtained by Bloomberg from Jason Schreier, Steve Boom, the vice president of Amazon Games, stated that the company is “focusing on the areas where Amazon excels.” The memo, which Variety has published in its entirety, indicates that Amazon plans to “halt a significant amount” of its first-party MMO development.
Amazon Games is currently the publisher for various MMOs such as NCSoft’s Throne and Liberty, Smilegate RPG’s Lost Ark, and it also serves as both the publisher and developer for the 2021 MMORPG New World. The development team behind New World, Amazon Games Orange County, is engaged in creating a The Lord of the Rings MMO. Boom’s memo highlights that there will be “significant role reductions” across their studios in Irvine and San Diego, along with cuts to the central publishing team.
Industry Layoffs Continue
In related news, Funcom, the studio behind the successful MMO Dune: Awakening, has also begun the difficult process of staff layoffs, stating: “This challenging process is starting now, and we cannot yet determine the exact impact.”
Following recent layoffs at BioShock developer 2K, Firaxis, known for Civilization and XCOM, has implemented job cuts attributed to a need for “adaptability, collaboration, and creativity,” which is a rather detached way to reference the reported significant job losses.
Additionally, after disappointing sales figures for Star Wars Outlaws, Ubisoft’s Massive Studio has described its “voluntary career transition program” as an “ongoing evolution,” often referred to as soft layoffs.
Future Projects and Challenges
While the future of Amazon’s current and upcoming MMO titles remains uncertain, Boom reassured staff that they are “continuing to collaborate with our external studio partners Crystal Dynamics on an upcoming Tomb Raider title and with Maverick Games on an anticipated open-world driving game.” Furthermore, he noted that the Montreal studio recently completed a successful closed alpha for March of Giants and is diligently working to finalize the game. The Studio 5 team has just launched Courtroom Chaos: Starring Snoop Dogg as the inaugural title on Luna and will maintain a focus on additional casual and AI-oriented games specifically tailored for Luna.
Regrettably, Amazon’s job cuts reflect a broader issue in the gaming industry. A GDC survey revealed that “one in ten” game developers faced layoffs in 2024, with major companies like Microsoft, 2K, and Ubisoft making substantial workforce reductions this year. Fallout co-creator has warned the industry amid increasing layoffs and an emphasis on AI, stating that developers are irreplaceable: “You’re left with a company where nobody knows anything.”