Amazon is cutting hundreds of jobs at Prime Video and James Bond studio MGM as the tech giant grapples with tough competition in the streaming market.

Staff were told that the company said it was eliminating “several hundred roles” following a review of its TV and film output.

Mike Hopkins, Amazon’s streaming boss, wrote: “Throughout the past year, we’ve looked at nearly every aspect of our business with an eye towards improving our ability to deliver even more breakthrough movies, TV shows, and live sports in a personalised, easy to use entertainment experience for our global customers.

“As a result, we’ve identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact.”

It marks the latest round of cuts in Amazon’s streaming business after more than 100 employees were laid off early last year.

In addition to its popular Prime service, Amazon also boosted its production capabilities through an $8.5bn (£6.7bn) takeover of MGM Studios in 2022.

MGM, which is celebrating its centenary this year, boasts a catalogue of more than 4,000 films and 17,000 TV shows, including the James Bond franchise and recent hit Saltburn.

But growing competition from the likes of Netflix and Disney, coupled with rising interest rates and wider economic troubles, has sparked a retrenchment across the sector.

Streaming services have begun hiking subscription prices, introduced ad-funded tiers and cracked down on password sharing in a bid to rekindle growth.

From next month, Amazon will introduce adverts alongside its films and TV shows. Subscribers will be forced to pay an extra £2.99 to remain ad-free.

Hollywood has also been left reeling by protracted strikes by writers and actors unions, which shut down many productions last year and forced studios to push back releases.

In the note, Mr Hopkins said Amazon was focusing its investments on “initiatives that we know will move the needle” but did not specify where exactly the cuts would fall.

Both Netflix and Disney have outlined plans to slash their content budgets as the squeeze on finances forces the companies to focus on quality rather than quantity.

Amazon insisted it would keep investing in programming, adding that its streaming service was one of the most popular benefits for Prime customers.

It comes amid broader cuts at Amazon as the economic downturn sparked a slew of layoffs across Silicon Valley. The tech giant slashed more than 25,000 roles last year in areas including cloud computing and advertising.

Read more:
Amazon to cut hundreds of staff at Prime Video and MGM