Amazon Game Studios Faces Major Downsizing with Significant Cuts During 14,000+ Layoff Wave

Amazon Terminates Over 14, 000 Corporate Positions, Impacting Game Studios

In a significant restructuring move, Amazon has announced the layoffs of more than 14, 000 corporate employees. As detailed in a report by Bloomberg, the company’s gaming division, Amazon Game Studios, faces notable reductions as well.

Details of the Layoffs Affecting Amazon Game Studios

Although Amazon has not disclosed the exact number of positions being cut from its video game division, Steve Boom, the head of audio, Twitch, and games, highlighted in a recent statement that these cuts are “significant.”He emphasized that despite these changes, the company remains proud of its achievements. Notably, the ongoing development of the MMORPG “New World”was not specifically mentioned; however, Boom indicated that the company will significantly reduce its endeavors related to MMO game development.

BREAKING: Amazon is making “significant”cuts to its video-game division, moving away from MMOs like New World, and gutting its Irvine and San Diego development studios www.bloomberg.com/news/article…

— Jason Schreier (@jasonschreier.bsky.social) 2025-10-28T16:10:51.081Z

Strategic Shift Towards Artificial Intelligence

A report from The Verge reveals that these layoffs are part of Amazon’s broader strategic shift towards artificial intelligence. In a memo to employees, senior executive Beth Galetti articulated the rationale behind the job cuts, stating, “The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs.”

Future of Amazon in Game Development

Despite the clear indication that the company is retrenching in the MMO segment, it remains uncertain whether Amazon will continue to explore other avenues within game development and publishing. This could represent a potential pivot away from the gaming sector altogether, redirecting focus towards film and television adaptations of gaming franchises. Indeed, Amazon has experienced substantial success with its popular TV series based on video game properties, including the much-lauded “Fallout”and the upcoming adaptations of “Wolfenstein”and “Mass Effect.”

As these developments unfold, industry observers and stakeholders are left wondering about Amazon’s long-term commitment to the gaming landscape.

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