Amazon Intensifies Layoffs, Expanding Cuts to Amazon Pay and Marketing

Amazon has recently undergone a spate of layoffs that surpass what was previously made public. The company's latest internal messages have surfaced, revealing that the job cuts extend beyond the initially announced figures, hitting areas such as Amazon Pay and the marketing department.

Layoff Details Unfold

After reports surfaced from Business Insider that Amazon was preparing to eliminate several positions from Prime Video and MGM Studios, an internal communication disclosed that Twitch—an Amazon subsidiary and streaming service—is expecting to lay off about 35% of its workforce. This reduction is part of Amazon's ongoing restructuring efforts and reflects the financial challenges Twitch has been facing.

Further exacerbating the employment uncertainty, staff within Amazon Pay received emails instructing them not to report to work, only to be laid off the following day. According to internal Slack messages obtained by Business Insider, these employees were promised 60 days of pay and severance benefits. The Slack messages revealed that the layoffs predominantly affected account management, sales, and solution architect roles within Amazon Pay,

Within the marketing department, it was also confirmed that a number of roles were eliminated. These cuts were separate from the reductions affecting Twitch and Prime Video.

Broader Impact and Market Reaction

These layoffs are part of a wider trend observed at Amazon, which began the year with the announcement of 18,000 job cuts. Beyond layoffs, there has been an apparent increase in voluntary departures, with some reports attributing this to Amazon's strict policy on returning to the office.

In light of these workforce reductions, it's noteworthy that Amazon's stock has been trading higher. This suggests that investors might maintain a positive outlook on the company's long-term prospects despite the current downsizing.

Amazon, layoffs, marketing