Amazon, the world’s largest e-commerce company known to be cutting 10,000 jobs, the largest ever, has begun restructuring its workforce by notifying its employees of layoffs.
Dave Limp, senior vice president of Amazon’s devices and services division, sent a memo to employees on the 16th, saying, “After review, the company has decided to integrate some teams and programs in the devices and services division.”
“We started notifying affected employees yesterday (the 15th),” he continued. “One of the decisions to consolidate was due to the determination that some roles are no longer needed.”
“It is painful to announce this news and to lose talented employees with this decision,” he wrote.
“Some team adjustments are being made,” Amazon said, “because certain positions are no longer needed.”
The total number of layoffs may be somewhat flexible, but the job cuts are the largest ever for Amazon, according to the NYT.
It is known that this restructuring will focus on the technical and retail sectors, as well as the personnel department.
New cloud gaming divisions such as Luna and Alexa Team, a voice assistant service, were also included in the restructuring target.
The number of employees has doubled in two years, but future performance is expected to fall short of market expectations due to concerns about the economic downturn.
When Amazon announced its third-quarter earnings last month, it expected fourth-quarter revenue to be between $140 billion and $148 billion. This was evaluated as falling far short of the market forecast of $155.15 billion.
As a result, the stock price plummeted, and the market capitalization also fell below 1 trillion dollars in 31 months.