Amazon Games, the company’s gaming subsidiary, reportedly laid off over 100 staff. Amazon Games VP Christoph Hartmann revealed the layoffs in a memo on Tuesday, as part of the company’s previously publicized plan to eliminate 9,000 positions. Among the affected employees are members of Game Growth, Amazon’s San Diego gaming studio, and Prime Gaming.

Amazon Games has struggled to generate a popular game since its 2013 inception, despite recruiting top talent from Sony Online Entertainment and publishing multiple titles. The division’s flagship game, “Crucible,” was released in May 2020 to terrible reviews, resulting in its immediate cancellation.

The gaming division layoffs are a result of Amazon CEO Andy Jassy’s efforts to reduce costs across the company. Jassy said last month that Amazon would lay off an additional 9,000 employees, including those in the Games division, in addition to the prior round of layoffs that totaled over 18,000 people. These reductions are part of a larger attempt to streamline operations and increase the company’s profitability.

In recent years, the video game industry has experienced substantial expansion, as the pandemic has boosted demand for entertainment alternatives. Nonetheless, industry competition is severe, and businesses must make popular games remain relevant. Despite large resources and high-profile recruits, Amazon Games has struggled to achieve success in this aspect.

Amazon Games’ layoffs are a major setback for the company’s gaming ambitions. Yet, it remains to be seen whether the division’s woes can be reversed with a new strategy and new people. In the meanwhile, the layoffs serve as a reminder of the issues even the most notable video game firms face in the industry’s fast-paced and competitive environment.