Amazon starts firing employees; devices and services organization first target
Earlier this week, we found out that e-commerce giant Amazon plans to cut around 10,000 jobs. The company has now confirmed that it will be slashing the workforce. Amazon's senior vice president David Limp informed employees about the layoffs through an email. The company's devices and services organization, human resources, retail division, and Luna will be most affected by job cuts.
Why does this story matter?
- The post-pandemic layoff spree continues. Amazon is the latest entrant.
- This was inevitable as the company has been resorting to cost-cutting measures for a while. Layoffs are usually the last step taken when prior actions don't reap the desired rewards.
- The company hired aggressively during the pandemic. In the post-pandemic world, such aggressiveness becomes unsustainable, and Amazon is now realizing that.
Amazon has decided to consolidate some teams and programs
In his email, Limp wrote, "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." Unfortunately, we have been aware of Amazon's plans courtesy of a report by The New York Times. Around 3% of the workforce is set to lose their jobs.
Company's devices and services organization, HR division are affected
Limp wrote that Amazon's "devices and services org" will be affected by the job cuts. Vox reported that the company's HR division is also at the receiving end of the ax. According to The Washington Post, the company has already started laying off some employees. Those working on Alexa and Luna are reportedly among those first affected by the job cuts.
Employees told to find a job internally or accept severance
Amazon has already begun informing employees that they must either find a job within the company in two months or accept a severance payment. The company will provide support for those affected by the cuts. The severance package for employees who cannot find a new role internally will include a "separation payment, transitional benefits, and external job placement support."
Amazon has attributed job cuts to current macroeconomic environment
With around 10,000 'Amazonians' set to face the ax, Amazon has become the latest tech giant to bite the bullet. It joins others such as Twitter and Meta, which have also undergone mass layoffs. The company's spokesperson Kelly Nantel said that "some roles are no longer necessary" considering the current macroeconomic environment. Amazon has reported two consecutive losses this year.