Amazon cuts games unit jobs in broader restructuring

Amazon plans to lay off more than 180 employees in its games division as part of a restructuring, as lingering recession fears prompt large companies to cut costs (see Forbes’ layoff tracker from the first quarter here).”After our initial restructuring in April, it became clear that we needed to focus our resources even more on the areas that are growing with the highest potential to drive our business forward,” said Christoph Hartmann, vice president of Amazon Games, in the Nov. 13 email.

Amazon’s gaming unit runs a subscriber-based service that allows users to download video games on a rotating monthly basis. According to Hartmann, the company will continue to provide that service. “We’ve listened to our customers, and we know delivering free games every month is what they want most, so we are refining our Prime benefit to increase our focus there,” he explained.

This is the second round of cuts to Amazon’s gaming unit this year. In April, around 100 jobs in the gaming division were eliminated. That mirrors larger cuts seen across Amazon’s businesses. More than 27,000 jobs have been eliminated over the past year.

Amazon’s third-quarter net income far surpassed analysts’ estimates and the Seattle-based company forecast revenue in the year’s final quarter roughly in line with expectations.