The affected division comprises some of Amazon’s high-profile product lines, including Alexa voice assistant, Echo smart speakers, Ring security products, and Zoox, its autonomous vehicle startup. A company spokesperson said that the layoffs are connected to the aligning of team structures with Amazon’s current product plans. The company failed to reveal which teams in the division were affected in particular. Amazon said it is still hiring in some areas of the unit even after the cuts.

Amazon has announced that it is laying off around 100 staff members from its  to help control costs and improve efficiency. This is just one part of a bigger trend of job cuts at Amazon, which has eliminated more than 27,000 roles over the last few years. Although the latest cuts are not as large as previous ones, it still reflects Amazon’s ongoing drive for better efficiency.

Amazon devices unit faces another round of cuts

The recent cuts are part of a trend of significant tech companies reducing their staff and streamlining their management structures. Amazon’s internal restructuring has involved an attempt to decrease the number of managers and increase the percentage of individual contributors. Last year, the company wanted to increase the contributor to manager ratio by 15% by the end of Q1 2025. The initiative is one of the ways Amazon is pursuing to accelerate decision-making and reduce the level of operational complexity.

This is not the first time that Amazon’s devices and services unit has experienced job cuts. Layoffs were also experienced in this division in the years 2022 and 2023. The company has continued to evaluate which teams to wind down as part of a larger cost-cutting exercise under new CEO Andy Jassy. Since 2021, when he took over, Jassy has been concerned with cutting overhead and improving the efficiency of Amazon’s sprawling workforce.

Tech layoffs continue across the industry

Amazon’s move is one of the trends that have been witnessed in the tech industry. Microsoft also announced this week that it will lay off about 6,000 workers, saying it needs to eliminate management layers. Other tech giants have followed suit in the last year in reaction to economic uncertainty and reduced growth.

While Amazon continues to claim that it is still investing in the critical areas, the recent layoffs indicate a conservative approach to spending. The company is still under pressure to increase profitability after years of expansion. More changes in workforce structure may be expected as cost-cutting measures persist.

Read More:

Vivo V50 Elite Edition with earbuds in-box launched in India