A few days ago the news of possible large layoffs was leaked in Amazon and today the rumors have found confirmation: the company seems to have started communicating the end of working relationshipcutting especially in the division Device & Services.
What we know about Amazon’s confirmation of layoffs in Device & Services
Dave Limp, Vicepresidente Senior di Device & Services Amazon published, on Wednesday, a note confirming the rumors that indicated the e-commerce multinational is ready to lay off thousands of employees.
Why was it Limp himself who broke this news? Because its own division will suffer the biggest cuts. In this regard, the Vice-President was keen to clarify a couple of points: there will be layoffs, but they will not affect the operation of the division which, at present, is responsible for the devices Echoreaders Kindle e Fire TV.
“While I know this news is hard to swallow, I want to emphasize that the Devices & Services organization remains an important area of investment for Amazon. Having been through times like this in the past, I know that when the economy is tough customers tend to gravitate towards companies and products they feel have the best customer experience. Historically, Amazon has done a great job of this.”
It’s not a good time for tech companies
Amazon joins Meta e Twitter regarding i layoffs of employees. The economic crisis and inflation may in turn have aggravated a not at all rosy picture and which has forced both Amazon and the other Big Techs to have to make difficult decisions.
As far as the Prime Day and next Black Friday could bolster earnings, but would still be insufficient stock to meet analysts’ expectations for the next quarter.
Faced with a scenario that is not at all reassuring, an internal Amazon source took the side of the company, stating that decisions such as cutting staff are never taken lightly.
“We are working to support all employees who may be affected,” he said, without specifying if the layoffs will really affect 10,000 employees. “Given the current macroeconomic environment, some teams are making changes, which in some cases means that some roles may no longer be needed.”