Amazon has announced the layoff of 100 employees from its Devices and Services division, which oversees key products such as the Kindle e-reader, Echo smart speakers, Alexa voice assistant, and Zoox autonomous vehicles. The company stated that the move is part of a broader initiative to streamline operations and align workforce efforts with its evolving product roadmap.
The layoffs represent a small portion of the overall team but mark another round of job reductions across Amazon’s various business segments. In recent months, the tech giant has made targeted cuts in teams working on Alexa, podcast platform Wondery, physical retail stores, and internal communications. These decisions are part of efforts to boost efficiency and reduce operational complexities.
The affected employees are being offered support and assistance during the transition. Amazon emphasised that these changes are intended to improve how its teams function and to position the company more effectively for future innovation.
While job reductions continue in some areas, Amazon has been hiring selectively. Between the last quarter of 2023 and the first quarter of 2024, the company added about 4,000 new employees. This mixed approach reflects Amazon’s strategy of tightening expenses in certain functions while investing in growth-oriented initiatives, particularly those involving AI.
Earlier this year, Amazon rolled out a significant upgrade to Alexa, incorporating advanced artificial intelligence to make interactions more natural and useful. The company is also pursuing internal restructuring, with Andy Jassy, CEO, reportedly aiming to cut through bureaucratic layers and reduce the number of managerial roles.
On the day the layoffs were announced, Amazon’s stock dipped slightly, closing at $210.25.
