In a recent internal memo, Amazon has confirmed the reduction of “just over” 180 positions within its gaming division, as reported by Reuters. Christoph Hartmann, Amazon Games’ Vice President, explained that the decision was driven by the need to concentrate resources on areas with the highest potential for advancing the business.

Details about the specific locations of the layoffs were not provided by Amazon. Although Amazon Games has a studio in Montreal led by former Rainbow Six: Siege developers, it remains unclear whether this particular branch has been affected. This move follows a previous reduction of around 100 jobs in Amazon’s gaming division in April, with the commitment to expanding its Montreal location.

How is Amazon shifting its focus in the gaming industry?

As part of the restructuring, Amazon will close its Crown Twitch channel and Game Growth, redirecting its focus towards providing free games through Prime Gaming. However, the company will continue its support for ongoing projects.

Amazon layoffs contribute to a growing trend of job cuts within the gaming industry this year. The sector has witnessed over 6,000 layoffs in recent months, affecting companies like PlayStation (Bungie and Naughty Dog), Xbox (343 Industries and Vancouver’s The Coalition), Epic Games (Fortnite), and EA (BioWare Edmonton).

It’s worth noting that Amazon, over the past year, has implemented a broader reduction strategy, eliminating more than 27,000 roles company-wide.

Severance pay for Amazon’s employees

In Canada, non-unionized employees and executives at Amazon are eligible to receive comprehensive severance pay in the event of job loss due to downsizing or corporate restructuring. The actual amount of severance pay can vary, potentially extending up to 24 months’ worth of pay, contingent on various factors. In instances of extensive layoffs like the present situation, severance pay may be even more substantial. If employees suspect they are not receiving their full entitled amount, it is advisable to seek legal counsel to ensure they secure the compensation rightfully owed to them.

At Whitten & Lublin, we acknowledge that facing job loss or termination is a stressful and challenging experience. Our seasoned employment lawyers are available to assist you in understanding your legal options and to guarantee you receive the compensation you deserve. We encourage those affected by the recent layoffs in Canada to reach out for a consultation, either online or by phone at (416) 640-2667, to discuss their situation today.