According to CNBC reports, Amazon is cutting around 30 employees from its Buy with Prime unit, seeking cost-saving measures.
As per Amazon, the reductions impacted less than 5% of the Buy with Prime division's staff but did not disclose how many employees are in the segment. Buy with Prime enables online stores to provide the same two-day shipping perks as Prime subscribers. Since its launch in April 2022, Amazon has broadened the program, forming partnerships with Shopify and Salesforce.
Assessment of Team Structures Based on Business Needs
In a recent statement, an Amazon spokesperson mentioned that the company routinely assesses team structures, making adjustments based on business needs. Following a recent review, a few positions in the Buy with Prime team will be eliminated, emphasizing that Buy with Prime remains a "top priority for Amazon," the company intends to continue investing significant resources in the program.
Some impacted employees were part of Amazon's multi-channel fulfillment unit, which operates alongside Buy with Prime under the "Project Santos" organization, overseen by Peter Larsen, a long-serving vice president. Multi-channel fulfillment enables merchants to ship and store products, irrespective of whether they sell on the leading site.
Continuous Job Eliminations Since 2022
Over 27,000 jobs across the company have been eliminated since late 2022, with ongoing layoffs this year mainly affecting employees in Amazon's Prime Video, MGM, Twitch, Audible, and Amazon Pay units. Other tech companies such as Google, Discord, Xerox, and Unity have also announced layoffs since the beginning of the new year.
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Amazon is helping laid-off employees from Buy with Prime find new positions within the company, receive their pay and benefits for at least 60 days, and make them eligible for a severance package. Interestingly, these layoffs occurred a week after the company announced a Buy with Prime integration with Salesforce, expanding the service's reach and functionality.
Amazon Ramps Up Layoffs
Amazon is increasing efforts to reduce its workforce due to a declining consumer market. Last week, the company cut several hundred Prime Video and Amazon MGM Studios positions, with over 500 people in its Twitch gaming streaming platform.
The reduction efforts also involved cuts to its Alexa team in November 2023 and positions in its Amazon Web Services (AWS) cloud computing unit in the U.S., Canada, and Costa Rica in April 2023.
Amazon CEO Andy Jassy announced plans to cut approximately 9,000 workers through a March 2023 memo. After hiring over 450,000 people in the U.S. from March 2020 to September 2021, Jassy mentioned that the company needs to reassess its staffing levels.
In early 2023, Amazon announced intentions to cut over 18,000 positions, with most reductions in its Amazon Stores and PXT organizations. In November 2022, Amazon publicly revealed plans to "consolidate" specific teams and programs in the devices and services organization, handling product lines like Amazon Echo and Kindle devices.
The company also introduced a voluntary reduction offer for certain employees in its PXT organization. Amazon has also cut headcount in other parts of its business, including the Whole Foods Market specialty grocery chain.
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