Amazon begins layoffs in devices and services


Amazon notified employees of the layoffs after deciding to consolidate some teams and programs into its Devices & Services organization.

The company did not specify the number of employees affected, but said it notified them on Tuesday, November 16, according to a blog post on the company’s website.

“As you know, we continue to face an unusual and uncertain macroeconomic environment,” Dave Box, senior vice president of devices and services at Amazon, said in the message, which was addressed to members of the organization. “In light of this, we have been working over the past few months to prioritize what matters most to our customers and the business.”

The Devices & Services organization includes Alexa, Echo, eero, Kindle, Fire TV and Amazon’s other consumer electronics devices and affiliated services, according to Limp’s LinkedIn page.

After review, the company has decided to proceed with the consolidations and workforce reductions, Limp said, adding that some of the affected employees may find new roles in the company while others will receive severance, transitional benefits and job placement assistance.

“While I know this news is hard to digest, I want to emphasize that the Devices & Services organization remains an important area of ​​investment for Amazon, and we will continue to invent on behalf of our customers,” Limp wrote in the post.

The announcement comes two days after a report that Amazon is looking to Fire about 10,000 employees this month in the first and largest move in company history.

Monday (Oct. 14) report by The New York Times said the cuts would be focused on the company’s device division as well as its retail and human resources departments.

Amazon currently has more than 1.5 million employees worldwide, which means that a layoff of this magnitude would represent a reduction in the workforce of around 0.5%.

Four days before that, on November 10, the Wall Street Journal reported that Amazon was evaluating its Alexa business as the company seeks to make cost reduction measures in the face of the economic downturn.

The devices unit recorded an operating loss of more than $5 billion in recent years, according to the report.

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