Amazon has announced layoffs of hundreds of employees in its Sales, Marketing, and Global Services organization, as well as a few hundred positions in its Physical Stores Technology team.
The company decided to reduce staff in the store technology division due to a broader strategic shift in the utilization of certain applications in both Amazon-owned and third-party stores.
“We have made the difficult decision to reduce several hundred roles across specific Sales, Marketing, and Global Services (SMGS) organizations,” Matt Garman, the Vice President of AWS Sales and Marketing said.
“The changes we are making are preparing the organization for the future, aligning with our strategy and priorities, and reducing duplication and inefficiency. I recognize the effect this has on every individual impacted.”
In the Sales, Marketing, and Global Services organization, the majority of cuts affect training and certification, as well as sales operations.
The tech giant’s net sales increased by 14% to Ksh22.1 trillion in the fourth quarter of 2023, compared with the Ksh19.3 trillion recorded in the fourth quarter of 2022 according to a report released on February 1, 2024.
AWS stated that it will continue to hire and grow in other parts of its business, especially in core areas of its business.
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The cloud giant which currently has thousands of open jobs assured that it is working to find internal opportunities for employees whose roles have been affected.
Amazon Cuts Jobs
“We have identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact,” an AWS spokesperson said.
“We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition to new roles in and outside of Amazon. These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
Amazon said the cuts will take place in regions around the world.
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However, the company announced that it will provide US-based employees with pay and benefits for at least 60 days, assistance in finding another job, access to transitional health benefits, and eligibility for severance pay.
The cuts in Amazon’s stores technology team come after on April 2, 2024, the company confirmed that it would be removing the ‘Just Walk Out’ cashierless shopping system from Amazon Fresh grocery stores in the US.
AWS said job cuts are part of an ongoing mass cost-cutting campaign at Amazon. Last week, the company cut up to 160 roles in its advertising unit.
