Amazon has announced another round of sweeping layoffs, cutting more than 14,000 corporate positions across multiple departments as part of its ongoing restructuring. The move, which CEO Andy Jassy described as “necessary to streamline operations and prioritize artificial intelligence initiatives,” marks one of the company’s largest workforce reductions since 2022.

While the majority of cuts are expected to affect Amazon’s corporate and tech teams, sources familiar with the matter say the company’s gaming division responsible for titles like New World and the Western release of Lost Ark has also been impacted.

According to an internal memo obtained by The Verge, Jassy framed the layoffs as part of Amazon’s effort to reallocate resources toward artificial intelligence and cloud-driven services. The memo stated that “as AI reshapes the future of work, Amazon must evolve alongside it,” emphasizing that the company plans to “focus on emerging technologies and streamline overlapping operations.”

This latest cut follows months of restructuring within Amazon Web Services (AWS), Prime Video, and Twitch. Analysts suggest the company is making aggressive moves to reduce long-term costs and consolidate its sprawling business units under fewer, more profitable pillars.

Impact on Amazon Games

While Amazon’s gaming efforts have been hit-and-miss over the years, the company has invested heavily in the space. Its in-house title New World launched in 2021 to strong early numbers but struggled to maintain momentum after its first year. Meanwhile, Lost Ark, published by Amazon Games in Western markets, remains one of the company’s few ongoing success stories, supported by a consistent player base and regular updates.

People close to Amazon’s gaming operations told Reuters that portions of the Seattle-based and Irvine teams were affected, with some staff reporting their termination notices earlier this week. Several LinkedIn posts from former employees confirmed that game design and publishing roles were among those cut.

Amazon did not disclose the exact number of layoffs within the gaming division but acknowledged that “select teams” were downsized as part of the larger company-wide reduction.

The company still has several active development projects, including a new Lord of the Rings MMO, though the status of that project remains unclear amid the restructuring. Industry observers note that Amazon may pivot its gaming focus toward publishing and live service partnerships rather than in-house production a safer route with fewer overhead risks.

For Amazon’s gaming workforce, however, the move feels familiar another chapter in a long story of highs, lows, and constant reinvention. Whether Amazon Games can recover and refocus remains to be seen, but for now, the company’s grand ambitions in gaming are once again caught in the crossfire of corporate realignment.