Amazon is victim of the metaverse chill as 9,000 people laid off

Amazon lays off 9,000 staff in cloud computing and Twitch

Further lay offs are announced by Amazon as Big Tech focuses on cost cutting.

Amazon has announced it will lay off 9,000 workers, primarily in cloud computing and its Twitch business.

A greater focus on efficiency which began in November 2022, has seen the current lay offs bring the total number of job cuts up to 18,000.

Global Data’s 2023 Predictions for the Enterprise: Metaverse, predicted setbacks and a loss of enthusiasm in the metaverse as reality catches up with the hype.

Andy Jassy, CEO at Amazon stated: “I remain very optimistic about the future and the myriad of opportunities we have, both in our largest businesses, stores and AWS, and our newer customer experiences and businesses in which we’re investing.

To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company.”

Earlier in March this year, Meta had also announced laying off 10,000 workers in order to increase efficiency.

Analyst Emma Mohr-McClune, expressed her concern in a podcast for GlobalData Thematic Research, about a metaverse winter which would stem from Meta itself – Amazon’s announcement just provides further evidence.