The Internet group Amazon has started the first major job cuts in its company history. Dave Limp, senior vice president of Devices & Services at Amazon, reached out to employees in his department on Wednesday (local time) to justify the job cuts. According to reports, the group wants to cut around 10,000 jobs. Limp did not confirm the number, but only spoke of a consolidation.
The Amazon manager referred to an “unusual and uncertain macroeconomic environment”. “Following an in-depth review, we have recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some features are no longer needed. It pains me to deliver this news as we know that this means we talented Amazonians will be lost from the Devices & Services organization.”
The affected employees were personally notified on Tuesday. Limp explained that they would support each individual and help them find a new job. Employees who can no longer be employed at Amazon should receive a package of severance pay, transitional benefits and external support with job placement.
Around 1.6 million people work at Amazon worldwide, most of them in the logistics centers of the online retail giant. The division that takes care of the voice assistant Alexa, the smart Echo loudspeakers and artificial intelligence applications is particularly affected by the cuts. According to estimates by industry insiders, this area is in deficit. So far, the expectations of Amazon management have not been met that online orders will be processed to an increasing extent via Alexa and an Echo device in the future. (dpa)