Amazon has started a rare series of layoffs that could reach up to 10,000 workers as the eCommerce giant looks to cut costs, according to business media reports and company statements.
The layoffs would affect about 3% of corporate staff and likely wouldn’t affect the hundreds of thousands of Amazon warehouse workers, The Wall Street Journal reported Nov. 16.
The WSJ reported that the layoffs are expected in Amazon’s retail, devices and human resources divisions. The newspaper said a source familiar with the cost-cutting plan said the final number could change.
Dave Limp, Senior Vice President of Devices & Services for Amazon, confirmed in a blog post that the company is beginning layoffs as a way to slash costs.
“After a deep set of reviews, we recently decided to consolidate some teams and programs,” Limp wrote. “One of the consequences of these decisions is that some roles will no longer be required. 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. I am incredibly proud of the team we have built and to see even one valued team member leave is never an outcome any of us want.”
Limp said Amazon notified impacted employees Nov. 15, and the company will “continue to work closely with each individual to provide support, including assisting in finding new roles.”
“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,” he added.
In his blog, Limp did not confirm how many workers may lose their jobs.
Citing employees who spoke to the newspaper, the WSJ reported that those targeted for cuts worked in Amazon’s Luna cloud-gaming service, Alexa marketing, Alexa AI and Alexa Privacy. The company also made cuts to its consumer product-development arm — Lab126 — a department that Amazon has used to test new innovations.
Last month, Amazon reported that 2022 third-quarter sales increased 15% to $127.1 billion, compared with $110.8 billion in third quarter 2021.