Amazon's Devices Team Faces 100 Job Cuts in Strategic Shift

One hundred workers in Amazon's Devices and Services group have reportedly been let go. According to the corporation, the jobs were a part of its routine business assessment and only made up a small portion of the unit's total.

Popular hardware products, including Fire TV devices, Ring security systems, and Echo smart speakers, are developed by the Devices and Services business. As you may remember, Amazon also let go of several workers in 2023 who had roles related to Alexa.

According to a statement provided to a media outlet, Amazon has made the tough choice to eliminate a few positions as part of its continuous efforts to improve the efficiency of its teams and programmes and to better align with the company's product roadmap.

Amazon’s Broad Restructuring Effort

Reports suggest that several teams within the Devices and Services section have been impacted; however, the precise extent of the layoffs is still unknown. Instead of focusing on a single product line, this implies a comprehensive reorganisation effort.

The layoffs occur as Amazon continues to deal with a difficult economic climate. Amazon has been concentrating on cost-cutting strategies to increase productivity and profitability, much like many other Internet corporations.

Several divisions have had staff losses as a result of these actions. A formal announcement outlining the reasons for this specific round of layoffs has not been issued by the corporation.

Achieving Massive Targets with Limited Resources: New Mantra of Amazon

Andy Jassy, the CEO of Amazon, informed staff that creating big teams and personal territories is not the way to progress at the firm. Instead, he emphasised that the online shopping giant rewards people who achieve more with fewer resources.

Jassy made these remarks at a recent all-hands meeting as part of his ongoing efforts to streamline the organisation's management structure and bureaucracy. The CEO emphasised Amazon's dedication to functioning as "the world's largest startup" in spite of its scale.

 A recent attempt to raise the company-wide ratio of individual contributors to managers by 15% is part of this approach. Amazon accomplished this goal by merging teams and transferring some supervisors into individual contributor positions instead of implementing widespread layoffs.

Additionally, Jassy emphasised the value of meritocracy above bureaucracy in the corporate culture of Amazon. He reported that 375 process changes have already been made as a result of going over a thousand employee emails sent to a specific "No Bureaucracy" alias.

Layoff has Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

Companies are still laying off employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.