Jennifer Salke, head of Amazon MGM Studios, is exiting her role for a production deal, according to a memo sent to staffers on Thursday.Salke is stepping down to start a new production entity via a first-look deal across both film and TV with Amazon MGM Studios, according to the memo.Salke joined Amazon in 2018 after the ouster of her predecessor Roy Price and helped lead Prime Video's growth. During her tenure, MGM Studios focused on broadly appealing entertainment and pushed to set itself apart with big, tentpole shows that could travel globally, like "Citadel." Salke also took charge of MGM, the fabled TV and film studio that's home to the James Bond franchise.Questions have long swirled around the future of MGM Studios. It's just one of several entertainment sources that feed Amazon's Prime Video service, and despite its big entertainment outlay, Prime Video trails Netflix and YouTube in TV watch time, capturing just around 3.5% of TV viewing, according to Nielsen.Amazon has also been pushing harder into live sports programming, with its ability to draw big, engaged audiences and advertisers wanting to reach them, leading some at the entertainment arm to question the company's commitment to their own business.Speculation has bubbled up over the years about Salke's future with the company. Recently, Amazon took full control of the highly valuable Bond franchise from its longtime custodians, Barbara Broccoli and her stepbrother Michael Wilson. Their relationship with Amazon, which Salke was in charge of managing, had grown frayed, The Wall Street Journal reported.Salke's boss, Mike Hopkins, said in his memo that it was her decision to leave, though."Following Jen's decision to step away we've decided to flatten our leadership structure a bit and not fill the head of studios role," Amazon's Prime Video and MGM Studios head wrote in a memo to staff. "In line with Amazon's recent work to streamline reporting lines and accelerate decision-making, we felt this was the best direction for our studio, which will now operate as distinct film and television studios."Courtenay Valenti, head of film, and Vernon Sanders, head of TV, will now report directly to Hopkins.Read Hopkins' full memo below:Dear Team,Since joining Amazon in 2018, Jen Salke has been a driving force in Amazon MGM Studios' evolution into what it is today: a world-class producer of award-winning films and series viewed by hundreds of millions of our customers around the world. Original films and series served as the foundation of Prime Video's growth into one of the world's leading entertainment destinations, and Jen's leadership is an undisputed driver of the success we've had in this space over the years.Having accomplished so much as an executive, Jen has decided that her next challenge and chapter will be on the production side, with the aim of getting even closer to the global creative community -- which she's been such a vital member of over the course of her career. As a result, Jen will step down from her role as Head of Amazon MGM Studios in order to start a new production entity, and we're so pleased that she'll continue to make her home right here on our lot via an overall first-look deal across both film and TV.In Jen's words:"Since I joined in 2018, we set out together to create a new type of global studio that fostered an environment for the world's most creative talent to do their very best work. Along the way, we expanded internationally, built out a film business and hired and developed an incredible team. As I've been considering my next chapter, I've always been searching for that moment where I was positive that our work had set up Amazon MGM Studios for even more success in the long term. When I look at the teams we've put in place, our amazing leaders, and the incredible slate of films and shows we've got in the pipeline, I realized now is that moment. I'm looking forward to continuing doing what I love, cultivating talent, supporting their vision, and bringing compelling stories to audiences around the world."I can't say enough to express my thanks to Jen for her partnership. Starting with my personal Day 1 in 2020, her vision, creativity and industry relationships were (and are) so apparent that I had no doubt our work together could be transformative not only to Amazon, but also to the industry as a whole. The Rings of Power, Fallout, Reacher, Red One, Maxton Hall, The Idea of You, Mr. & Mrs. Smith, Saltburn, Road House, Beast Games, Culpa Mia/Tuya and others speak to the hits under her leadership that have stirred cultural conversation and delivered incredible storytelling to worldwide audiencesand that list covers only the past 18 months. In addition, her leadership is evidenced by the senior team she's hired and developeda team that I know will step up in a big way going forward.Speaking of that team, we will be taking a couple of weeks to have thoughtful conversations with Jen's directs and others to finalize the ideal long-term structure for the Amazon MGM Studios organization as a whole, and we'll have more to share on that work soon.One thing I did want to call out is the fact that following Jen's decision to step away we've decided to flatten our leadership structure a bit and not fill the head of studios role. In line with Amazon's recent work to streamline reporting lines and accelerate decision making, we felt this was the best direction for our studio, which will now operate as distinct film and television studios. To that end, Courtenay Valenti (Head of Film) and Vernon Sanders (Head of TV) will now report directly to me, while Sue Kroll will also continue in her role leading global marketing across both film and TV.I'm immensely proud of the momentum our team at studios has built over past 12-18 months, executing against our strategic plan and developing a fantastic slate of original shows and films that position us for even more success ahead.Please join me in once again thanking Jen and wishing her the best on this next adventurethankfully, she won't be far away and we still have much to do together.-Mike