Amazon Games gutted amid 14,000 layoffs: work on first-party games and MMOs in particular scaled back, "casual and AI-focused games" a continued focus

Amazon confirms it is reducing its global workforce by "approximately 14,000 roles", and there have been substantial cuts across its burgeoning video game division.

As reported by Bloomberg's Jason Schreier, in a memo to Amazon staff reviewed by Bloomberg, Games vice president Steve Boom says the company is "leaning into the things that Amazon does best."

The memo – which Variety shares in full – notes that Amazon will "halt a significant amount" of first-party MMO development. Amazon Games is the current publisher for MMOs like NCSoft's Throne and Liberty, Smilegate RPG's Lost Ark, and it is both the publisher and developer behind 2021 MMORPG New World. That game's team, Amazon Games Orange County, is working on a The Lord of the Rings MMO; Boom's memo notes there will be "significant role reductions in our studios in Irvine and San Diego, as well as our central publishing team."

While the status of Amazon's existing and upcoming MMO projects is unconfirmed, Boom says "we are continuing to work with our external studio partners Crystal Dynamics on an upcoming Tomb Raider title and Maverick Games on an upcoming open world driving game." He also says, "Our Montreal studio recently concluded a successful closed alpha of March of Giants and is working hard to finish the game. Our Studio 5 team just released Courtroom Chaos: Starring Snoop Dogg as the launch title in Luna and will continue their focus on more casual and AI-focused games, optimized for Luna."

Unfortunately Amazon's job reductions are the latest in an ongoing problem facing the industry, as a GDC survey reported that "One in 10" game developers were laid off in 2024, with the likes of Microsoft, 2K, and Ubisoft making major cuts this year.

Fallout co-creator warns studios amid rising layoffs and focus on AI that devs are not replaceable: "You're left with a company where nobody knows anything."