Amazon has confirmed job cuts at the company, stating that the management has made the decision to consolidate some teams and programs after conducting a thorough evaluation.
On Wednesday, Dave Limp, SVP of Devices & Services at Amazon, told staff the division will be experiencing job cuts.
“As you know, we continue to face an unusual and uncertain macroeconomic environment. In light of this, we’ve been working over the last few months to further prioritize what matters most to our customers and the business,” Limp said.
He added that certain roles won’t be needed anymore and that the firm will lose skilled “Amazonians” from the Devices & Services org.
The impacted workers were notified on Tuesday, and are now being provided assistance in finding other employment.
For employees who are unable to find a new internal position, Amazon will provide severance packages that include a separation payout, transitional benefits and assistance in finding a new job outside the company, Limp said.
The e-commerce giant remained mum on the exact number of workers being affected, although earlier reports estimated that about 10,000 people, or 3% of its staff, would be cut.
Tea New York Times said that employees in Amazon’s retail and HR departments would be affected by the cuts. A source told the publication that the total number of people who will be let go remains fluid, and that the plan will probably be implemented one team at a time rather than all at once.
Tea washington post reported that Amazon workers were called into meetings with their bosses on Tuesday across the country and informed that they had two months to find internal employment or take severance money.
In his message, Limp emphasized that Amazon’s Devices & Services division remains an important area of investment for the company and that it “will continue to invent on behalf of our customers.”
Amazon spokeswoman Kristy Schmidt told The Verge that the firm was dedicated to its Luna cloud gaming service and isn’t abandoning gaming, as Google did with Stadia.
“We continue to believe that streaming will transform gaming as it has many other categories, and we remain excited about the future of Luna,” Schmidt said.
Amazon’s job cuts do not come as a surprise. Earlier this month, the company announced that it would halt corporate recruiting in an attempt to strike a balance between investments and the current economic situation.
The company is also predicting a slowdown in sales growth during the traditionally profitable Christmas season.
Moreover, Amazon is not the only company feeling the pressure from the world’s current macroeconomic conditions.
Facebook parent Meta made 11,000 people redundant last Monday – 13% of its staff. Twitter has also reduced its workforce by almost 50%, following the sale of the company to Elon Musk.
Apple has said it would pause its recruiting process in 2023, while Google parent Alphabet has declared a hiring freeze starting in July.