Amazon cuts about 250 posts in its Devices and Services division

E-commerce giant Amazon has cut jobs once again. The company has decided to eliminate about 250 posts in its Devices and Services division. Employees affected were informed by email and text message on Wednesday morning. The news has brought the issue of layoffs in the tech industry back into discussion.

Amazon has confirmed the cuts. The division works on the Kindle e-reader, devices running the Alexa voice assistant and other consumer technology products. According to a person familiar with the matter, most of the affected employees in the division work in software development.

Cherry Robinson, the division's Vice President for Human Resources, said in a message to employees that the company had reviewed its fundamental operations and then decided to cancel some posts. However, the company did not make clear which team has been hit hardest. Nor was it stated exactly how many employees will lose their jobs.

The cuts come at a time when Amazon has recently launched new Kindle e-readers and tablets. The company has also reportedly introduced new alarm clocks and photo frames based on Alexa technology. On one hand, the company is working on new products; on the other, it is reducing headcount.

The company says the aim of the decision is to make operations more effective and to set staff numbers in line with upcoming product plans. It did not say that the cuts were made because a particular project is being shut down.

This is Amazon's second big round of layoffs in October. At the start of the month, it had emerged that about 1,000 jobs were being cut in the company's main retail business. Now posts in the Devices and Services division have been cut. The retail division is tied to the online shopping business, while the Devices and Services division makes technology products for customers. The decisions in the two divisions suggest the company is reviewing the structure of its operations and its manpower needs.

Meanwhile, Amazon is investing heavily in artificial intelligence (AI) and cloud computing. Chief Executive Officer Andy Jassy had earlier spoken about growing demand for Amazon Web Services (AWS) capacity. He had said a large part of the cloud capacity for 2027 and 2028 is already reserved for customers.

Amazon has planned capital expenditure of about $220 billion for 2026. The spending includes investment in infrastructure and technology.

Attention will now be on how much of a gain the company draws from its investments in AI, cloud services and consumer technology products, and how it balances manpower with spending.