Amazon cut up to 250 jobs in its devices and services division on October 28. The company said, "We've made the difficult decision to eliminate a small number of roles." These layoffs happened despite recent product launches. Most affected positions were in software development as the firm reorganised its structure.
Amazon has cut up to 250 jobs in its devices and services division, adding to a series of workforce reductions across the company. The latest cuts came at a time when the technology giant was announcing new products, including Kindle e-readers, tablet computers and Alexa-powered devices.
Why is Amazon cutting jobs in its devices division?
The layoffs took place on Wednesday, 28 October, with most of the affected positions reportedly linked to software development. Amazon confirmed the job cuts following an inquiry by Reuters but did not disclose the exact number of employees affected.
An Amazon spokesperson said, "We've made the difficult decision to eliminate a small number of roles," without providing further details.
The company said the decision was taken to help it "operate more efficiently and better align with our product roadmap".
The explanation points to changes in how Amazon wants to organise its devices business and allocate resources to future products. However, the company has not identified the specific teams or projects that led to the decision.
Amazon's stated reason for the layoffs is a review of its organisational structure and the need to align its workforce with its product plans.
According to a message seen by Reuters, Cherie Robinson, a vice president of human resources in the devices and services division, told employees that the company had conducted "a thorough review of our structure" before deciding to eliminate roles.
The company has not explained whether the cuts are linked to changes in individual product plans, a reduction in development work or a broader restructuring of the division.
A person familiar with the matter told Reuters that the cuts affected no more than 250 jobs, with software development accounting for most of the affected positions.
The timing has drawn attention because Amazon had announced several products in the weeks before the layoffs. The company had recently introduced new Kindle e-readers and tablet computers. It also unveiled five Alexa-powered devices on 28 October, including an alarm clock and a photo frame.
The product announcements show that Amazon continues to invest in its hardware and smart-home business. However, launching new products does not necessarily mean that every existing team or role will remain part of its future plans.
Employees received early morning messages about job losses
The way Amazon informed employees was another notable part of the latest round of cuts. Workers received text messages and emails early on Wednesday morning, following the company's usual practice of notifying employees about job reductions.
One of the messages reviewed by Reuters came from Robinson. It referred to the internal review that had led to the decision to eliminate certain positions.
Amazon has not publicly shared a detailed list of affected teams, the locations where the jobs were cut or the support being offered to employees who lost their positions.
The reported figure of 250 should also be treated as an upper limit rather than an officially confirmed number. Amazon itself has only described the affected positions as a small number of roles.
Earlier in October, the company cut around 1,000 jobs in its core retail division, which manages its main online shopping business. Those reductions were also presented as part of efforts to adjust the company's organisational structure and business priorities.
The latest cuts in the devices and services division suggest that the restructuring is not limited to Amazon's retail operations.
Amazon has previously made several rounds of workforce reductions as it reviews its spending, management structure and business priorities. The company is also investing in artificial intelligence and other technologies, although it has not directly linked the latest devices division layoffs to AI.
For now, Amazon's explanation remains focused on improving efficiency and aligning its workforce with its product roadmap. It has not announced whether further job cuts are planned in the devices and services division.