In an effort to ‘consolidate some teams and initiatives,’ Amazon has officially announced that it would be making some layoffs. Dave Limp, senior vice president of devices and services at the e-commerce company, made the decision in a message to the workers, according to Fox News. Although the precise number of layoffs has not been determined, according to a source cited by the Wall Street Journal, they might affect 10,000 positions across Amazon’s retail, devices, and human resources departments.
‘Following a thorough evaluation process, we recently chose to combine several teams and initiatives, which had the unfortunate side effect of eliminating some responsibilities, according to Limp’s message from Wednesday. He stated that the employees were informed a day earlier and told that the business will assist the dismissed staff to find other employment. It hurts me to have to give this news as we know we will lose great Amazonians from the Devices & Services org as a result,’ he said.
According to Limp, ‘We contacted impacted workers yesterday, and will continue to work closely with each individual to give support, including aid in finding new employment. In situations when workers are unable to secure a new position within the organisation, we will facilitate the transition with a package that includes a separation payment, transitional benefits, and outside job placement assistance’. On Wednesday, Amazon began executing its planned job cuts across its tech and business personnel, joining its Silicon Valley rivals in a wave of layoffs. Over 10,000 jobs will apparently be lost in the first major layoff in the company’s history.
The news comes a day after reports surfaced that the tech giant would start letting go of 10,000 workers, or 3% of its workforce, in its retail and Alexa units due to sluggish growth. Amazon made significant workforce reductions alongside competitors like Twitter and Meta. Between April and September of this year, the company reportedly cut its headcount by 80,000 and halted both hourly and corporate hiring.
On social media, the affected employees posted about their experiences. As part of its cost-cutting initiatives, Amazon had already closed down some divisions of its company and shelved plans for things like a personal delivery robot. As it battles a slowdown in sales via its ecommerce platforms, the company’s shares have decreased by more than 40% this year.
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