E-commerce giant Amazon has on Wednesday confirmed that it is laying off approximately 100 employees in its devices and services division, amidst ongoing cost-cutting efforts.
The devices and services unit comprise many businesses, including the Alexa Voice assistant, Echo Hardware, Ring Video doorbells, and Zoox robotaxis.
Speaking on the layoff, Amazon spokesperson Kristy Schmidt said,
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“As part of our ongoing work to make our teams and programs operate more efficiently, and to better align with our product roadmap, we’ve made the difficult decision to eliminate a small number of roles. We don’t make these decisions lightly, and we’re committed to supporting affected employees through their transitions.”
The company did not specify which units within the division were impacted; however, it noted that it will continue to hire within the devices and services division.
Amazon’s workforce saw rapid expansion during the pandemic, growing from 798,000 employees in 2019 to over 1.6 million by the end of 2021. However, as consumer demand stabilized, the company began recalibrating its staffing levels. Over the past two years, Amazon has already laid off 27,000 employees, primarily in corporate roles, as part of a cost-cutting effort. By late 2024, its global workforce stood at approximately 1.5 million, including 350,000 corporate employees and over a million frontline workers in warehouse and delivery operations.
In recent months Amazon has faced significant scrutiny over its return-to-office policy, particularly as it unfolds in tandem with a series of large-scale layoffs. The mandate requires employees to work from the office five days a week, a directive that has been met with resistance from many within the workforce.
Jassy set a target to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. The rationale behind Amazon’s firm stance on returning to office likely intersects with its broader business strategy, particularly as it relates to layoffs and restructuring efforts. With a focus on “conscious unbossing,” Amazon aims to flatten its hierarchical structure, purportedly to increase speed and efficiency in decision-making.
The recent job cuts of 100 workers, is coming after the company in March this year, laid off 14,000 managerial employees, as part of a sweeping restructuring plan aimed at increasing efficiency and reducing costs. The move, which represented a 13% reduction in the company’s global management workforce, is expected to save Amazon between $2.1 billion and $3.6 billion annually.
By the first quarter of 2025, Amazon plans to increase the ratio of individual contributors to managers by at least 15%, a strategy designed to accelerate decision-making and enhance operational efficiency. A Morgan Stanley report released in October 2024 also projected that Amazon’s restructuring might cut nearly 13,834 managerial roles by early this year.
The financial services company also estimated that the cost per manager at Amazon ranged between $200,000 and $350,000 a year. According to sources, Jassy has been vocal about reducing bureaucratic layers that slow down processes, reinforcing his vision of making Amazon function more like a nimble startup.
Jassy’s move to trim the organization comes at a time when Amazon, like many tech companies, is contending with economic challenges. Other tech giants are also downsizing. On Tuesday, Microsoft announced it would cut approximately 6,000 jobs to reduce management layers. These layoffs are part of a broader trend in the tech industry, where companies are grappling with slowing revenue growth and rising costs after years of rapid expansion.