Amazon Lays Off 14,000 Employees as New World Enters Sunset Phase

Amazon has confirmed another wave of large-scale layoffs, cutting roughly 14,000 jobs across multiple divisions, including Amazon Games. The company describes the move as part of a broader “efficiency initiative.” However, the scale of the cuts has sparked criticism from employees and analysts alike — especially given Amazon’s continued profitability and growing investment in artificial intelligence.

According to reports from Bloomberg, Amazon’s ongoing restructuring marks one of its most aggressive rounds of downsizing since 2022, signalling a deeper pivot toward automation and AI-driven productivity.

Amazon Games Among the Hardest Hit

The layoffs have had a particularly severe impact on Amazon Games, with the company confirming that its flagship MMO New World will officially enter its sunset phase.

While servers will remain active through 2026, the title will no longer receive new content updates. The decision effectively marks the end of active development for one of Amazon’s earliest original IPs, which launched in 2021 after years of delays and reworks.

The news has left many in the gaming community questioning the future of Amazon’s broader gaming ambitions, particularly given the company’s uneven track record in the space.

Major Projects Still in Development

Despite the layoffs, several high-profile Amazon Games projects remain unaffected. These include:

Tomb Raider (developed by Crystal Dynamics) – the next mainline entry in the long-running action-adventure franchise.
March of Giants – an unannounced large-scale strategy game still in active development.
A mystery racing title in production at Maverick Games.

Sources indicate that all three titles continue to progress as planned, with no reports of staff reductions or production slowdowns.

Strategic Shift Toward AI and Casual Games

Bloomberg’s report also suggests that Amazon Games is shifting focus toward casual and AI-enhanced experiences, aligning with the company’s broader corporate agenda to integrate artificial intelligence across its product ecosystem.

However, the fate of one of its most anticipated projects — the Lord of the Rings MMO — remains unclear. No official update has been provided since the layoffs were announced.

Industry Reaction and Outlook

While Amazon maintains that the cuts are part of a long-term plan to “streamline operations,” many view the move as emblematic of a troubling industry trend: large tech companies prioritising automation and profit margins over creative investment.

For Amazon Games, the layoffs represent both an end and a crossroads — closing the book on New World while raising questions about whether the company’s future in gaming lies in blockbuster production or algorithm-driven innovation.