Amazon begins layoffs in devices, services division

Nov. 16 (UPI) -- Amazon has started laying off employees from its devices and services division, the company confirmed in a memo to employees on Wednesday.

The Seattle-based tech giant did not immediately specify how many employees would be affected by its move to consolidate some teams and programs.

"After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required," Senior Vice President of Devices and Services Dave Limp wrote in the memo.

"While I know this news is tough to digest, I do want to emphasize that the Devices & Services organization remains an important area of investment for Amazon, and we will continue to invent on behalf of our customers."

The Devices and Services division deals with the company's Echo, Kindle, Fire Tablet and Fire TV products, among others.

Reports earlier in the week speculated the company would lay off 10,000 employees in the company's largest-ever round of cuts.

The company said it has notified affected employees and will work with others to "provide support, including assisting in finding new roles."

Those that can't find new internal roles will be given transitional benefits and external job placement support, the company said in the memo.

Wednesday's layoffs are part of a larger wave of job cuts. The company confirmed it will make multiple adjustments to other teams above and beyond the Devices and Services branch, with more roles becoming redundant or unnecessary.

"We don't take these decisions lightly, and we are working to support any employees who may be affected," Amazon representative Kelly Nantel told CNBC in a statement.

In October, Amazon announced it was freezing corporate hiring for its retail business amid a period of slow growth. The company said it would stop hiring for all corporate roles in its retail business until at least next year.

Amazon's stock fell on Wednesday following the news. The company's shares were down 1.53 points or 1.54% at market close, trading at $97.42.

Amazon almost doubled the size of its global workforce from 2019 to 2021, from 798,000 employees to 1.6 million.

Meanwhile, Facebook's parent company, Meta, last week announced it would lay off 11,000 employees. And Twitter has cut about half its workforce and thousands of contractors since Elon Musk bought the platform.