By Michelle Chapman
Amazon is cutting several hundred positions across its Prime Video and MGM Studios unit.
Last month Amazon said that Prime Video users would start seeing ads on movies and television shows starting on January 29, setting a date for an announcement it made back in September.
Prime members who want to keep their movies and TV shows ad-free will have to pay an additional $2.99 per month.
Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, said in a note to employees that the company is boosting investment in areas with the most impact, while stepping back from others.
Amazon has cut thousands of jobs after a hiring surge during the pandemic. In March, Amazon announced that it planned to lay off 9,000 employees. That was on top of the 18,000 employees the tech giant said that it would lay off in January 2023.
Job cuts are occurring elsewhere in the company this week.
Twitch, the video game streaming platform acquired by Amazon a decade ago for close to $1 billion, is laying off more than 500 employees as the company tries to turn the tremendously expensive division profitable.
Twitch CEO Dan Clancy in an email to employees said that even with cost cuts and growing efficiency, the platform "is still meaningfully larger than it needs to be given the size of our business."
"For some time now the organization has been sized based upon where we optimistically expect our business to be in 3 or more years, not where we're at today," Clancy wrote.
Departing employees at Amazon Prime will receive a separation payment and other benefits like job placement support.
In May Amazon said that it would distribute its original films and TV shows, like "The Marvelous Mrs. Maisel," to media outlets outside its Prime Video service for the first time.
That content would be licensed via a new unit called Amazon MGM Studios Distribution, which expands the number of titles currently offered by Hollywood studio MGM. In 2022, the e-commerce-behemoth-turned-media-giant closed its acquisition of MGM — which houses more than 4,000 film titles and 17,000 TV episodes — for $8.5 billion.
Michelle Chapman is an AP business writer
Supreme Court declines to hear appeal from singer R. Kelly, convicted of child sex crimes
The Supreme Court declined to hear an appeal Monday from the singer R. Kelly, who is now serving 20 years in prison after being convicted of child sex convictions in Chicago.
The Grammy Award-winning R&B singer, born Robert Sylvester Kelly, was found guilty in 2022 of three charges of producing child sexual abuse images and three charges of enticement of minors for sex.
His lawyers argued that a shorter statute of limitations on child sex crime prosecutions should have applied to offenses dating back to the 1990s. Current law permits charges while an accuser is still alive.
The justices did not detail their reasoning in declining to hear the case, as is typical. And none publicly dissented. Lower courts previously rejected his arguments.
Federal prosecutors have said the video showed Kelly abusing a girl. The accuser identified only as Jane testified that she was 14 when the video was taken.
Kelly has also appealed a separate 30-year sentence for federal racketeering and sex trafficking convictions in New York.
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