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Amazon Implements Job Cuts in Books Division

Published 15 hours ago2 minute read
Amazon Implements Job Cuts in Books Division

Amazon has recently announced job cuts within its Books division, a foundational part of its business since its inception in the 1990s. The company confirmed that fewer than 100 employees were impacted by this decision, which affects units including the popular book review site Goodreads and its Kindle e-reader operations. This move was first reported by Business Insider, citing an internal email sent to affected staff.

In a statement, an Amazon spokesperson explained the rationale behind the layoffs: "As part of our ongoing work to make our teams and programs operate more efficiently, and to better align with our business roadmap, we've made the difficult decision to eliminate a small number of roles within the Books organization." The company emphasized its commitment to supporting the affected employees through their transition. An internal email detailed that employees will receive full pay and benefits for the next 60 days, or 90 days for employees in New York or New Jersey, plus additional severance. The spokesperson reiterated, "We don't make these decisions lightly, and we're committed to supporting affected employees through their transitions."

Despite these reductions, Amazon has stated that it is not shrinking its Books business. Instead, the eliminated roles are expected to be repurposed for other parts of the company. The Books division remains a significant revenue generator for the e-commerce giant, which famously started as an online bookseller. Although Amazon closed its physical bookstores in 2022, its online book sales have continued to be substantial, with reported sales of $16.9 billion in the first ten months of 2022, according to a previous Business Insider report.

These job cuts in the Books division are part of a broader pattern of piecemeal layoffs across various Amazon departments as CEO Andy Jassy undertakes an initiative to reduce what he has described as an excess of bureaucracy and streamline operations, including by reducing the number of managers. In recent times, the company has also reduced staff in its devices and services unit, its Wondery podcast division, and among its stores and communications staff.

While implementing these targeted reductions, Amazon's overall workforce saw a net addition of approximately 4,000 jobs in this year's first quarter compared to the last quarter of the previous year, according to a disclosure last month. On the day the news of the Books division cuts emerged, Amazon's shares closed 0.3% higher, though they have seen a 5.6% decline so far this year.

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