CNN
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Amazon confirmed on Wednesday that it has begun laying off workers, two days after multiple media reports said the e-commerce giant plans to cut about 10,000 jobs this week.
Amazon’s initial layoffs will affect the roles of the Devices and Services team, according to a memo shared publicly by Dave Limp, Amazon’s senior vice president of devices and services.
“After a series of in-depth reviews, we recently decided to consolidate some teams and projects. One of the consequences of these decisions is that certain roles will no longer be required,” Limp said. “We notified affected staff yesterday and will continue to work closely with everyone to provide support, including assisting with finding new roles.”
Limp did not specify the number of layoffs.
Amazon spokeswoman Kelly Nantel told CNN Business in a statement that the company looks at all of its businesses as part of its annual operations review process. “If we go through all this, given the current macroeconomic environment (and several years of rapid hiring), some teams are making adjustments, which in some cases means that certain roles are no longer needed,” Nantel added.
She continued: “We do not take these decisions lightly and we are working hard to support any staff who may be affected.”
Amazon and other tech companies have ramped up hiring over the past few years as the pandemic shifted consumer habits toward e-commerce. Now, as people return to pre-pandemic habits and macroeconomic conditions deteriorate, many of these seemingly untouchable tech companies are experiencing whipsaws and layoffs of thousands of employees.
After hitting record highs during the pandemic, Amazon’s shares are down more than 40% so far in 2022, while the broader market downturn has hit the tech sector particularly hard.