It sounds like ALL MMO development has been shuttered (Including LOTR) - per the letter that went out.
"We’ve also taken a critical look at the evolving dynamics of games industry and competitive landscape. While we’re proud of our successes in first-party AAA game development and publishing, we have made the difficult decision to halt a significant amount of our first-party AAA game development work – specifically around MMOs – within Amazon Game Studios, including making significant role reductions in our studios in Irvine and San Diego, as well as our central publishing team.
While these changes are significant, we still have a lot going on in game development. Our Montreal studio recently concluded a successful closed alpha of March of Giants and is working hard to finish the game. Our Studio 5 team just released Courtroom Chaos: Starring Snoop Dogg as the launch title in Luna and will continue their focus on more casual and AI-focused games, optimized for Luna. Finally, we are continuing to work with our external studio partners Crystal Dynamics on an upcoming Tomb Raider title and Maverick Games on an upcoming open world driving game."
Videos
https://gameworldobserver.com/2025/10/28/report-amazon-to-conduct-massive-layoffs-gaming-division-also-affected
Reports indicate that the layoffs will affect several key Amazon divisions, including the gaming sector. However, the exact number of staff to be cut from the gaming teams is unknown.