Amazon is implementing a new round of layoffs, cutting fewer than 1,000 white-collar jobs, primarily within its stores division, which manages the company's main e-commerce website [1]. The layoffs come shortly after the conclusion of Amazon's October Prime Big Deal Days sales event, which took place on Tuesday and Wednesday [1]. This move follows a series of larger workforce reductions totaling approximately 30,000 jobs that began last year and continued into January [1].
According to Reuters, the latest layoffs will impact multiple divisions, including customer service and selling partner services, as well as other units across the company [1]. Employees in the United States, India, and the United Kingdom are reportedly among those affected by these job cuts [1]. Internal Slack messages reviewed by Reuters and shared by affected employees indicate the broad scope of the layoffs [1].
An Amazon spokesperson stated, "We've adjusted parts of our Stores business because we believe this structure will better enable us to deliver on our priorities" [1]. Amazon founder Jeff Bezos, in an interview with Fox News, referenced the company's substantial workforce expansion during the COVID-19 pandemic and addressed concerns about artificial intelligence's impact on employment, expressing disagreement with more pessimistic predictions [1].
Following the news, Amazon's stock (AMZN) closed at $259.92, up $3.63 or 1.42% [1].
CONCLUSION
Amazon's decision to cut nearly 1,000 white-collar jobs marks a continued effort to streamline operations following significant workforce growth during the pandemic. While the layoffs affect multiple divisions and regions, the company's stock price rose, suggesting limited immediate negative market reaction. Amazon maintains that the restructuring will better position it to achieve its strategic priorities.