Amazon cuts 250 jobs in devices and services division amid wider tech layoffs

Global tech layoffs exceeds 80,000 in Q1 2026, with annual losses projected to surpass 300,000

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NH Digital

  • Amazon has reportedly cut 250 jobs in its devices division, following nearly 1,000 retail job cuts

  • Global tech layoffs exceeded 80,000 in Q1 2026, with annual losses projected to surpass 300,000

  • Oracle, Netflix and Microsoft are cutting jobs while increasing investments in AI and data centres

Amazon has reportedly laid off around 250 employees in its devices and services division as the US technology giant looks to streamline operations and align its workforce with key product priorities.

According to multiple reports, employees were informed of the job cuts through early-morning emails and text messages. Most of those affected held software development roles within the division, which is responsible for products such as Kindle e-readers, Alexa-enabled devices and other consumer electronics.

Amazon confirmed the layoffs, stating that it had completed a thorough review of its organisational structure and decided to eliminate certain positions as part of its efforts to improve operational efficiency.

The latest round of job cuts comes just weeks after the company unveiled new Kindle e-readers and tablet computers. On Wednesday, Amazon also launched a new alarm clock and photo frame powered by Alexa, its voice assistant.

The reductions follow nearly 1,000 job cuts reportedly made in Amazon's retail division earlier this month. While the devices and services unit focuses on consumer technology products, the retail division primarily manages the company's online shopping operations.

Amazon was scheduled to announce its quarterly financial results on Thursday, US time, amid continued scrutiny of the company's spending, workforce strategy and investment priorities.

Amazon's latest workforce reduction comes against the backdrop of a broader wave of job cuts across the global technology industry. More than 80,000 jobs were reportedly eliminated during the first quarter of 2026, with annual losses projected to exceed 300,000, according to industry estimates cited in reports.

Several major technology companies have announced workforce reductions as they seek to control costs while investing heavily in artificial intelligence (AI) and supporting infrastructure.

Oracle reportedly began another round of layoffs in September as the software company sought to reduce payroll expenses while committing tens of billions of dollars to expand its data-centre capacity. The investment is aimed at meeting growing demand for computing power driven by AI applications.

Streaming company Netflix also reportedly cut nearly 1,000 positions in October, representing around 6 per cent of its workforce. The reductions largely affected teams across product development, technology, legal and human resources.

Meanwhile, Microsoft has been offering voluntary buyouts to approximately 60,000 employees, or around a quarter of its workforce, as it seeks to manage costs while continuing to invest substantially in AI.

The latest developments highlight the growing pressure on technology companies to balance workforce expenses with investment in emerging technologies. As businesses redirect resources towards AI infrastructure and strategic product areas, further changes to staffing and organisational structures remain a key issue across the sector.

With IANS inputs

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