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Investing.com -- Amazon.com Inc. (NASDAQ:AMZN) is making significant cuts to its video-game division as part of a larger corporate restructuring that will eliminate more than 14,000 jobs across the company.
According to Bloomberg, citing a memo sent to staff on Tuesday, Steve Boom, vice president of Audio, Twitch, and Games, announced the company would "halt a significant amount of our first-party AAA game development work – specifically around MMOs – within Amazon Game Studios."
The cuts will primarily affect Amazon’s studios in Irvine and San Diego, as well as its central publishing team. While the exact number of positions being eliminated in the video-game unit was not specified, Boom described the reductions as "significant."
Amazon plans to scale back its work on big-budget titles, with a particular focus on reducing development of massively multiplayer online games (MMOs).
"While we’re proud of our successes in first-party AAA game development and publishing, we have made the difficult decision" to make these cuts, Boom wrote in the email reviewed by Bloomberg News.
The video-game division reductions are part of Amazon’s broader layoffs affecting thousands of corporate positions throughout the company.
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