Amazon begins its mega lay-off

Amazon on Wednesday laid off hundreds of people in two separate business units: its streaming platform Twitch and its film and TV studio unit.

Amazon is laying off "hundreds" of people at Prime Video and Amazon-MGM Studios. Separately, Twitch, the video game streaming company owned by the tech giant, said on Wednesday it would lay off 500 employees as part of ongoing cost-cutting efforts.

"We have identified opportunities to reduce or discontinue investment in certain areas while increasing investment and focusing on materials and manufacturing initiatives that will have the greatest impact," the letter said.

Amazon is strengthening the company's position in the entertainment world as it adds more content to its already extensive library for its streaming service, Amazon Prime Video.

Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, said in an internal memo that the company began contacting affected employees on Wednesday. Hopkins said the company "offers a package that includes salary benefits, country-to-country transit rights and overseas job placement."