June 16, 2024

Amazon Revolutionizes Product Descriptions with Gen AI

Amazon, a top online marketplace, has announced plans to lay off several hundred employees in its streaming and studio platforms. On Wednesday, the marketplace announced this through an internal note as companies continue to announce job cuts.

The tech industry has been affected by job cuts over the past two years, and it now appears like this trend is spilling over into 2024. More layoffs might be announced in the coming months as these companies look to trim costs.

Amazon is Trimming More Jobs

Amazon will be trimming employees from its Prime Video and Amazon MGM Studios. The tech giant will inform the US-based employees affected by these layoffs on Wednesday. It will also inform the affected employees in most other countries by the end of the week.

Amazon has been downsizing on a massive scale. Just last year, the online retail giant trimmed over 27,000 jobs in a wave of layoffs in the tech industry. These layoffs come as the company shifts its model. The company was on a hiring spree during the pandemic as online retailing boomed. However, this is no longer the case.

A Reuters report revealed that the senior vice president of Prime Video and Amazon MGM Studios, Mike Hopkins, sent a note to employees saying they had detected opportunities to trim or discontinue investments in some areas.

Hopkins said,

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.

Amazon has increased its spending in recent years to promote the growth of its media business. The company announced an $8.5 billion deal for MGM, including around $465 million for the first season of “The Lord of the Rings: The Rings of Power, ” which aired on Prime Video last year.

Amazon believes its media business will flourish and attract more users and viewership by making such initiatives. If the company can increase its revenues through such deals, it could amplify its profitability.

Ads Are Coming To Amazon Prime

Amazon is also rolling out ads to increase its revenue base and cater to increased costs. The current subscribers will automatically be under the ad-funded tier. The company will then launch a cheaper tier with ads.

Rolling out ads is meant to compete against leading streaming giants such as Netflix and Disney+ that have rolled out ads to their subscribers to give them better-priced options.

The success of the ad tiers Amazon offers will depend on factors such as targeting, the growth in subscriber numbers, etc.

However, the tech company already has experience in ad packages, having managed the free ad-supported streaming TV channel Freevee. This experience will strengthen its proposition and resolve significant issues on the platform.

Not much is known about the volume of ads Amazon will support on its platform or its ad format. Additionally, the type of targeting to be used by Amazon remains unknown.

Many companies witnessed layoffs in 2022 and 2023. They are now redirecting their resources towards select projects and divisions.

Some are even shutting down divisions initially seen as resource-intensive. For instance, Amazon trimmed some jobs at the Alexa voice assistant division as Microsoft laid off staff at LinkedIn.


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