Amazon Game Studios is undergoing significant restructuring with layoffs happening this week.
According to Bloomberg, Amazon is making substantial cuts in its games division as part of a larger layoff impacting around 14,000 employees company-wide. The specific number of people affected in the games division hasn’t been revealed.
The recent job cuts will primarily affect employees in the Irvine and San Diego offices. The company is also reducing its focus on developing large, expensive games, particularly online multiplayer games such as New World.
While games like the new Tomb Raider are still planned, the teams developing them will be smaller.
In an email to staff, Steve Boom, Amazon’s vice president overseeing Audio, Twitch, and Games, announced that the company is scaling back its ambitious AAA game development efforts. He explained that they’ve decided to stop working on several large-scale, first-party games, particularly massively multiplayer online games (MMOs), leading to job cuts at their studios in Irvine and San Diego, and within the central publishing team.
According to Boom, these changes are part of a broader plan for Amazon’s gaming business. He explained that they’ve been reviewing their future strategy, focusing on providing top-quality gaming experiences and leveraging Amazon’s strengths.
The recent release of Luna is a perfect illustration of how we’re focusing on both streaming entertainment and providing benefits for Prime members. And, as always, we’re just getting started.
Even with recent budget reductions, development work is still happening. For example, the Montreal team just completed a closed alpha test of March of Giants, and Studio 5 launched Courtroom Chaos: Starring Snoop Dogg as a new game for the Luna platform.
Amazon continues to collaborate with studios like Crystal Dynamics on the upcoming Tomb Raider game and Maverick Games on a new open-world driving title.
These layoffs are part of a larger pattern happening in the video game industry. Over the past few years, several big companies like EA, Xbox, and Bend Studio have all reduced their workforce.
In a recent memo, Boom addressed the challenging circumstances. He stated, “Days like these are undeniably difficult, and we’re losing valuable team members who have greatly impacted our customers. These decisions weren’t made easily, but they are essential for the continued success of our business.”
These shifts demonstrate that even major companies such as Amazon are rethinking their approach to gaming. They’re now prioritizing areas like game streaming and simpler games, and scaling back investment in expensive, large-scale projects.
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2025-10-28 21:15