Home Press Release Amazon confirms team reductions in hardware and services

Amazon confirms team reductions in hardware and services

On Wednesday, the division's staff members were told of job cuts by Amazon's SVP of devices and services.

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In an email to staff members on Wednesday, SVP Dave Limp said that Amazon is eliminating positions in its devices and services division.

We recently chose to merge some teams and programmes, Limp said, “after a thorough series of reviews.” There will be some roles that are no longer necessary as a result of these decisions. Amazon will offer assistance to those impacted by the layoffs, and if an individual is unable to secure employment elsewhere within the organisation. Limp reports that the company will offer a severance package that includes “a separation payment, transitional benefits, and external job placement support.”

A very tiny portion of the team will be affected by the changes, an Amazon spokesman told in an email. Though she did not specify how many people would be affected.

Unfortunately, the layoffs are not entirely unexpected. The New York Times revealed on Monday that the corporation intended to eliminate approximately 10,000 workers this week. According to CNBC, the layoffs apparently started on Tuesday. And those affected included those working on Amazon’s Luna cloud gaming service and Alexa. Schmidt did affirm that Amazon is still dedicated to Luna, so unlike Google with Stadia, it isn’t abandoning cloud gaming.

As it has with many other industries, streaming will undoubtedly revolutionise gaming, and Schmidt expressed his continued excitement for Luna’s future.

The latest major IT business to announce significant job losses in recent weeks is Amazon. Snap announced in August that it was reducing its workforce by 20%, and Meta announced on November 9th that it would be laying off 11,000 people. Elon Musk, the company’s new owner, has slashed almost half of Twitter’s workforce, thousands of contractors. And is now requesting that remaining staff members either embrace a “very hardcore” culture or quit the organisation.

Furthermore, even Apple is impacted by the increasingly difficult economic climate; according to CEO Tim Cook. The business will be halting some hiring.

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