Apparently the layoffs come due to a desire for more free games.
Logo for Amazon Games showing the word "games" above the Amazon arrow symbol.

Amazon Games has just laid off 180 employees. This is according to a new report from Aftermath, which cites sources familiar with the matter. Amazon then confirmed that they have laid off the entirety of the Crown Channel, an Amazon-backed Twitch channel.

An internal email was also obtained concerning these layoffs. The email was sent by Amazon Games vice-president Christoph Hartmann. In the email, he seems to suggest that because Amazon Prime users want monthly free games, these layoffs were a necessary evil.

"We've listened to our customers, and we know delivering free games every month is what they want most, so we are refining our Prime benefit to increase our focus there. With these changes in our business approach come changes to our resourcing, resulting in the elimination of just over 180 roles." - Christoph Hartmann
This is the second time this year alone that Amazon Games laid off employees. The first layoffs happened in April when about 100 employees were let go.