Amazon to cut jobs in Prime Video and MGM Studios

Amazon.com Inc (NASDAQ: AMZN) is in focus today following a report that it plans on executing targeted layoffs in Prime Video and MGM Studios.

How many employees will be laid off?

The job cut will affect several hundred of its employees in those segments, as per “The Information”. According to Mike Hopkins – senior vice president of Prime Video and Amazon MGM Studios:

The news arrives less than a month after Amazon was reported planning on investing in Diamond Sports Group to secure more sports media rights.  

Shares of the tech behemoth are currently up about 27% versus its low in late October.

Amazon is cutting jobs in Twitch

Amazon.com Inc will inform its U.S. employees that are being let go on Wednesday while those affected in other regions will be informed by the end of this week.

On Wednesday, the Nasdaq-listed behemoth also revealed plans of cutting about 500 jobs in its Twitch livestreaming unit to "rightsize our company". It's the third time that Amazon is lowering headcount at Twitch in less than a year.

Earlier this week, Brian Pitz – a BMO Capital analyst assumed coverage of Amazon stock with an “outperform” rating. His $200 price objective suggests an over 30% upside from here.

Pitz told clients in his research note that Amazon Web Services will continue to lead in the cloud space. Same-day delivery, he added, will keep its retail operations fairly competitive as well.