New York: Amazon is set to lay off more than 100 employees in its video gaming division.
A memo from an executive overseeing the gaming division informed staffers of the development, CNBC reported.
The layoffs will affect employees at the Game Growth division, Amazon's San Diego game studio and Prime Gaming, according to the memo by Christoph Hartmann, who is the Vice President of Amazon Games.
Hartmann reportedly said that some employees were shifted to the company’s new project.
Hartmann said that the company will treat impacted employees with empathy and respect while offering them severance pay, health insurance benefits outplacement benefits and paid time to search jobs.
Job cuts has to do with the continuing cost controlling by Amazon CEO Andy Jassy.
Jassy announced last month that Amazon will lay off 9,000 more workers on top of more than 18,000 layoffs previously executed by the company.
Meanwhile, Amazon slapped a hiring freeze for its corporate staff alongside stalling its ‘experimental projects like telehealth service and robot delivering packages to customer’s doorsteps, according to CNBC.
Despite bringing out several published games, and hiring top talents from other companies, Amazon Games has not been able to pull off a major hit since coming into effect in 2013.
Meanwhile, there came about changes in senior positions which includes retirement of Mike Frazzini in March after helped establishing Amazon’s Game Studios.
More important, John Smedley, head of Amazon Games' San Diego studio, left the company in January this year.