Amazon, Netflix hit with layoffs as hundreds of workers let go

A wave of layoffs has swept through major US technology and entertainment companies, with Amazon and Netflix both cutting staff.

Amazon carried out job cuts centered on its Stores division, which oversees the company's e-commerce website, according to the Los Angeles Times and Business Insider on Saturday (local time). The reductions affected fewer than 1,000 employees.

Workers across customer service, engineering and marketplace support units in the United States, India and the United Kingdom received termination notices.

Amazon had already eliminated 30,000 jobs between late last year and early this year and has continued making smaller workforce reductions since then.

Amazon founder Jeff Bezos said in a recent Fox News interview that the company had overhired during the pandemic, making ongoing cuts unavoidable. "People were staying home and ordering more — it was an exciting but pressured time for us," he said. "We achieved a great deal, but we ended up growing our workforce too much."

A sharp focus on AI investment is also a factor. Amazon is pouring resources into its AI project and plans to commit $220 billion to data centers and related infrastructure.

Netflix is also reportedly planning a significant round of layoffs.

The Los Angeles Times, citing sources, said Netflix intends to cut about 800 employees — roughly 5 percent of its total workforce. The move would mark the company's largest round of layoffs since 2022.

Netflix has increased spending on content, but viewership hours grew just 2 percent in the first half of this year compared with the same period last year.

Co-CEO Ted Sarandos acknowledged the slowdown at a recent Bloomberg Screentime event. "We're not growing as fast as we'd like," he said.

The company's gaming division is also being restructured. Netflix shut down game studio Night School in August and plans to close Moon Studios, a Helsinki-based studio in Finland.