Entertainment Companies Begin Wave of Layoffs
It’s a rocky start of 2024 for the entertainment industry, as it is facing heavy layoffs in companies spanning film, TV, music, and gaming.
This round of layoffs has hit several big companies, including Amazon, Pixar, and Universal Music Group. Entertainment, media, gaming, and technology companies have been under pressure to reduce costs due to economic difficulties, Hollywood strikes, corporate consolidations, and other factors, following a rapid increase in hiring during the COVID-19 pandemic.
UMG, the largest record company in the music industry, stated on Friday in a note to The Times that it intends to create “efficiencies in other areas of the business to remain agile and responsive to the dynamic market”, in response to reports predicting the layoff of hundreds of employees in the coming weeks.
This week, Amazon announced the layoff of several hundred employees working for its streaming platform, Prime Video, and its film and television division, Amazon MGM Studios. Mike Hopkins, the senior vice president of Prime Video and Amazon MGM Studios, wrote in a note to employees: “[W]e have identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that have the most impact.” “Our prioritization of initiatives that we know will have a significant effect, along with our continued investments in programming, marketing, and product, positions our company for an even stronger future.”
At the same time, Amazon’s livestreaming platform Twitch, a major player in the gaming industry, said it plans to lay off about 500 workers, or about one-third of its staff.
The CEO of Twitch is upset that the news of the layoffs leaked early. In a blog post, Twitch CEO Daniel Clancy said the company has been working to build a more sustainable business, cutting costs throughout the year. “Unfortunately, despite these efforts, it has become clear that our organization is still significantly larger than necessary given the size of our business,” he wrote. Other technology and gaming companies in Northern California are facing severe job reductions this month, continuing a trend of cuts that began early last year.
Pixar, a Disney-owned animation studio, is facing layoffs, potentially affecting up to 20% of its workforce, which translates to about 300 jobs. This downsizing at Pixar is occurring as the studio attempts to recover from a decline in box office performance caused by the COVID-19 pandemic.
Game company Unity Software and messaging company Discord, both based in San Francisco, announced another round of layoffs as part of its restructuring efforts.
Source: Los Angeles Times
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It’s a rocky start of 2024 for the entertainment industry, as it is facing heavy layoffs in companies spanning film, TV, music, and gaming.
This round of layoffs has hit several big companies, including Amazon, Pixar, and Universal Music Group. Entertainment, media, gaming, and technology companies have been under pressure to reduce costs due to economic difficulties, Hollywood strikes, corporate consolidations, and other factors, following a rapid increase in hiring during the COVID-19 pandemic.
UMG, the largest record company in the music industry, stated on Friday in a note to The Times that it intends to create “efficiencies in other areas of the business to remain agile and responsive to the dynamic market”, in response to reports predicting the layoff of hundreds of employees in the coming weeks.
This week, Amazon announced the layoff of several hundred employees working for its streaming platform, Prime Video, and its film and television division, Amazon MGM Studios. Mike Hopkins, the senior vice president of Prime Video and Amazon MGM Studios, wrote in a note to employees: “[W]e have identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that have the most impact.” “Our prioritization of initiatives that we know will have a significant effect, along with our continued investments in programming, marketing, and product, positions our company for an even stronger future.”
At the same time, Amazon’s livestreaming platform Twitch, a major player in the gaming industry, said it plans to lay off about 500 workers, or about one-third of its staff.
The CEO of Twitch is upset that the news of the layoffs leaked early. In a blog post, Twitch CEO Daniel Clancy said the company has been working to build a more sustainable business, cutting costs throughout the year. “Unfortunately, despite these efforts, it has become clear that our organization is still significantly larger than necessary given the size of our business,” he wrote. Other technology and gaming companies in Northern California are facing severe job reductions this month, continuing a trend of cuts that began early last year.
Pixar, a Disney-owned animation studio, is facing layoffs, potentially affecting up to 20% of its workforce, which translates to about 300 jobs. This downsizing at Pixar is occurring as the studio attempts to recover from a decline in box office performance caused by the COVID-19 pandemic.
Game company Unity Software and messaging company Discord, both based in San Francisco, announced another round of layoffs as part of its restructuring efforts.
Source: Los Angeles Times
