Amazon has made headlines recently by announcing the elimination of 14,000 jobs, a decision that reportedly includes significant cuts to its video games department. According to a recent report, the tech giant is making drastic changes within its gaming division, particularly in relation to large-scale game projects.

In an internal memo addressed to employees, Steven Boom, who oversees Audio, Twitch, and Game at Amazon, outlined the company’s plans to scale back development on high-budget titles, especially within the massively multiplayer online (MMO) genre. He noted, “Although we are proud of our achievements in first-party AAA game development and publishing, we have had to make the tough choice to cease a considerable amount of our first-party AAA game development efforts—specifically in MMOs—within Amazon Game Studios. This includes substantial staff reductions at our studios located in Irvine and San Diego, along with our central publishing team.”

While Amazon has not disclosed specific figures regarding the job cuts within its gaming division, employees have taken to social media to express their concerns. Reports indicate that teams involved in the projects New World and the recently announced Lord of the Rings MMO may be among those affected. In a LinkedIn post, Ashleigh Amrine, a former senior gameplay engineer, shared, “This morning, I was part of the layoffs at Amazon Games, along with my incredibly talented colleagues on New World and our aspiring Lord of the Rings game (which many would have loved).”

Amazon’s foray into the gaming sector has been rocky, starting with the abrupt cancellation of its free-to-play shooter, Crucible, just five months after its launch in 2020, followed by another cancellation four months later when it returned to beta. Other challenges have included an earlier attempt at an MMO set in the Lord of the Rings universe, which was scrapped in 2021 due to a fallout with Tencent, a large Chinese corporation. While New World initially gained traction after its launch in 2021, it has struggled to maintain player interest. One of the company’s other key projects is the upcoming Tomb Raider game developed by Crystal Dynamics, which was reported to be progressing well as of last August.