The retailer plans to cut around 10,000 jobs.
Over the last several years, due in large part to a change in shopping habits brought about by the COVID-19 pandemic, ecommerce giants like Amazon were hiring large swaths of workers. The increased labor force was necessary to drive trucks, staff fulfillment centers, and work internal jobs to keep up with the volume of online shopping orders. However, as the pandemic has calmed and shoppers return to brick-and-mortar stores, these additional jobs have been rendered redundant.
Earlier this week, Amazon announced that they would begin a large swath of layoffs that may affect all aspects of their daily business. This morning, the first wave of layoffs went into affect, primarily targeting the devices and services sector.
“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,” Dave Limp, senior vice president of devices & services at Amazon, said in a memo to employees. “We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles.”
The precise number of laid off employees has not been divulged, though the initial rumors surrounding the layoffs suggested that the company will cut around 10,000 jobs in total.
“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,” Amazon spokesperson Kelly Nantel told CNN Business.
“We don’t take these decisions lightly, and we are working to support any employees who may be affected.”