Tech layoffs: Mass firings at Amazon continue, tech giant terminates 5% of staff at Buy with Prime unit

Having laid off hundreds of employees just days into 2024, e-commerce giant Amazon has terminated more people from its workforce from  Buy with Prime division, according to a report by Reuters.

Launched in 2022, Buy with Prime provides fulfilment and delivery services to non-Amazon retailers through Amazon’s expansive logistics network.

Despite the layoffs, Amazon emphasized that Buy with Prime remains a key focus, with ongoing substantial investments in the unit. The company did not disclose the exact number of employees affected by this move.

However, according to inside sources that the Reuters report quotes, over 30 employees from the Buy with Prime unit are impacted by the layoffs. Amazon clarified that it is actively assisting the affected employees in finding alternative roles both within and outside the company.

This reduction in staff comes on the heels of Amazon’s recent layoffs in its streaming and studio operations, including Twitch live-streaming platform and Audible audiobook unit, as reported by various media outlets.

Last week, Google, owned by Alphabet, also announced the layoff of hundreds of employees in its advertising sales team.

Amazon has a history of job cuts, having laid off 27,000 employees in two phases in the previous year. The first round eliminated 18,000 roles, followed by a further reduction of 9,000 positions.

In 2024, the company continued to streamline its workforce, particularly in divisions such as Prime Video and MGM Studios, in addition to job cuts in Twitch and Audible.

Further developments indicate that Twitch is planning to cut approximately 35 per cent of its staff, equivalent to around 500 positions.

CEO Dan Clancy mentioned that the company is reassessing its size in alignment with its business scale. Concurrently, Amazon has announced job cuts in Audible, affecting approximately 5 per cent of its workforce.

In a memo to employees, Audible CEO Bob Carrigan acknowledged the company’s strong position but highlighted the increasingly challenging landscape it faces.

(With inputs from agencies)

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