Amazon's Hardware Staff First To Face Brunt Of Downsizing

Amazon's Hardware Staff First To Face Brunt Of Downsizing
  • Amazon.Com, Inc's AMZN low-margin and costly hardware divisions will likely face the brunt of Andy Jassy's initial 10,000 "role eliminations" to satisfy investor demands for greater profitability
  • The teams working on the Alexa voice assistant, Kindle reader, and Halo health tracking device were among the first to have been told that they were among the dismissals this month, following the tech giant's "routine" yearly review, Financial Times reported.
  • Amazon's dismissals are part of the sector's broader tech sell-off and headcount reduction. 
  • Also Read: Amazon of Africa, Jumia Technologies Undergoes Tough Restructuring To Boost Bottomline
  • The wave of job cuts focused on expensive corporate and technology positions rather than the warehouse and fulfillment centers that comprise the large majority of its global workforce of 1.5 million.
  • In a memo to staff, Jassy suggested even sacred cows, such as the online store, could be hit in the coming months. Jassy set the scene for more sweeping dismissals in the remainder of this year and into the next.
  • An internal document suggested Amazon's Worldwide Digital division, of which Alexa is a large part, was on course to lose $10 billion this year. 
  • As he seeks to find broader savings, Jassy reportedly appeared less attached to Alexa than Amazon founder Jeff Bezos.
  • Price Action: AMZN shares traded lower by 0.52% at $96.04 premarket on the last check Thursday.

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