India
oi-Madhuri Adnal
Amazon has cut around 250 jobs in its devices unit, which makes products such as Kindle e-readers and Echo smart speakers. The layoffs, announced on Wednesday, mainly affect software development roles and come as the company steps up its focus on artificial intelligence (AI).
According to Reuters, employees affected by the decision received emails and text messages early in the morning. One of the emails was sent by Amazon Vice President Cherie Robinson, who said the company had reviewed its organisational structure before deciding to eliminate certain positions.
Amazon cut approximately 250 jobs in its devices unit on Wednesday, mainly impacting software roles as the company prioritizes its focus on artificial intelligence (AI) and operational efficiency.
“We’ve made the difficult decision to eliminate a small number of roles,” an Amazon spokesperson said, confirming the layoffs. The company did not disclose the number of employees affected, though the Reuters report put the figure at around 250.
Why Is Amazon Laying Off Employees?
Amazon said the cuts were intended to make its operations more efficient and bring its workforce in line with its product plans.
The move comes as the company prepares for a bigger role for AI in software development. A memo from Amazon’s engineering leadership, published in September, urged developers to adapt to the changes brought by the technology.
“We all need to embrace this change and take the time to learn, or we risk being left behind,” the memo said, stressing the growing importance of AI in software engineering.
The layoffs came on the same day Amazon announced five new devices powered by Alexa. The lineup includes a redesigned Echo Show 16 smart display, an Alexa Photo Frame and the Echo Time bedside clock. These products are part of the devices business affected by the job cuts.
The latest layoffs add to a series of workforce reductions at Amazon over the past year.
Earlier this month, the company moved to cut around 1,000 jobs in its core retail division. In January, Amazon announced 16,000 job cuts, following another round that affected 14,000 employees in October last year.
At the same time, Amazon is committing substantial sums to AI. The company is expected to invest as much as $220 billion in the technology this year, as it expands its AI infrastructure and capabilities.
Job cuts are continuing across the technology industry, even as companies invest heavily in AI and other emerging technologies.
According to Layoffs.fyi, more than 135,000 tech jobs have been eliminated so far this year. Dropbox recently announced plans to reduce its global workforce by 9%.
Microsoft has also offered voluntary exit options to roughly 60,000 employees, equivalent to about one-fourth of its workforce.
