Amazon confirms rare layoffs have started as final number could reach 10,000: reports
Amazon's Devices and Services Division among first to suffer job losses
The Heritage Foundation's Andy Puzder discusses Amazon's sweeping layoffs and how the labor force has changed since the COVID-19 pandemic on 'Fox Business Tonight.'
Amazon has confirmed Wednesday that it is starting to lay off workers as the e-commerce giant is trying to "consolidate some teams and programs."
The cuts were announced in a memo to staff written by Dave Limp, senior vice president of devices and services at Amazon.
A person familiar with the matter told The Wall Street Journal that the layoffs could amount to 10,000 jobs total – including in Amazon’s retail, devices and human resources divisions – but the number has not yet been finalized.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 210.16 | +3.07 | +1.48% |
"After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required," Limp wrote. "It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result."
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David Limp, senior vice president of devices and services at Amazon.com Inc., presents the Amazon Echo Dot smart speaker during an unveiling event at the company's Spheres headquarters in Seattle, Washington, U.S., on Sept. 20, 2018. (Andrew Burton/Bloomberg via Getty Images / Getty Images)
"We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles," he added. "In cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support."
A company spokeswoman told FOX Business Wednesday that "As part of our annual operating planning review process, we always look at each of our businesses and what we believe we should change.
"As we’ve gone through this, given the current macro-economic environment (as well as several years of rapid hiring), some teams are making adjustments, which in some cases means certain roles are no longer necessary," she added. "We don’t take these decisions lightly, and we are working to support any employees who may be affected."
Amazon announced earlier this month that it is hitting pause on corporate hiring under CEO Andy Jassy.
The job cuts don't appear to affect Amazon's warehouse workers, according to The Wall Street Journal. (AP Photo/Eduardo Munoz Alvarez / AP Newsroom)
"We anticipate keeping this pause in place for the next few months, and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense," Beth Galetti, senior vice president of people experience and technology at Amazon, said in a note to employees.
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Amazon says the job cuts are being made because of the "current macroeconomic environment." (REUTERS/Gonzalo Fuentes / Reuters Photos)
Specific teams targeted for the job cuts include those in Amazon’s Luna cloud-gaming service, Alexi Marketing, Alexa AI and Alexa Privacy, according to The Wall Street Journal.
The devices unit of Amazon – which is well-known to consumers for products like the Alexa smart-assistant brand -- employs over 10,000 workers but has lost more than $5 billion annually in some recent years, the newspaper added.
FOX Business’ Megan Henney contributed to this report.