Amazon has confirmed another round of layoffs in 2025, eliminating approximately 100 positions from its devices and services division in May. This latest workforce reduction affects teams responsible for some of Amazon’s most recognizable consumer products, including Alexa voice assistant, Echo smart speakers, Ring video doorbells, and the autonomous vehicle subsidiary Zoox. The cuts represent a continuation of Amazon’s aggressive restructuring strategy that began in 2022, during which the company has eliminated over 27,000 roles across various divisions.
The timing of these layoffs coincides with Amazon’s broader organizational transformation under CEO Andy Jassy, who has prioritized operational efficiency and cost reduction since taking the helm. Unlike the massive layoffs witnessed during the pandemic recovery period, these cuts are described as targeted reductions aimed at streamlining operations rather than emergency cost-cutting measures. Amazon spokesperson Kristy Schmidt emphasized that the decision was made “to make our teams and programs operate more efficiently, and to better align with our product roadmap.”
The devices and services division has been particularly vulnerable to restructuring efforts, having experienced similar layoffs in both 2022 and 2023. This pattern suggests that Amazon is systematically reevaluating its hardware and AI-adjacent segments, many of which have struggled to become consistent profit centers despite significant investment. The division’s experimental nature, particularly with projects like Zoox robotaxis, makes it a natural target for efficiency-focused leadership seeking to balance innovation with profitability.
Strategic Restructuring Behind the Layoffs
Amazon’s latest job cuts are part of CEO Andy Jassy’s comprehensive plan to flatten organizational structures and eliminate bureaucratic layers. The company has set an ambitious target to improve the ratio of individual contributors to managers by at least 15%, a goal that was scheduled for completion by the first quarter of 2025. This restructuring philosophy reflects a broader industry trend toward leaner operations and faster decision-making processes.
The layoffs also align with Amazon’s increased focus on artificial intelligence and automation across its operations. According to internal communications, the company has deployed over 1,000 AI tools internally, ranging from code-writing bots to customer interaction agents. This technological advancement is reshaping traditional roles, particularly in customer service, software development, and middle management positions.
Impact on Amazon’s Product Portfolio
The devices and services division houses both mature products like Echo and Alexa, as well as experimental technologies such as Zoox autonomous vehicles. While Alexa and Echo have achieved widespread adoption, they have faced challenges in generating substantial revenue streams. The division underwent a significant transformation earlier in 2025 with the introduction of Alexa Plus, featuring enhanced generative AI capabilities designed to make the voice assistant more conversational and proactive.
Despite the layoffs, Amazon maintains that it continues hiring within certain areas of the devices and services division. This selective approach suggests the company is reallocating resources toward more promising technologies while scaling back investment in underperforming segments.
Amazon’s workforce reduction mirrors similar actions across the technology sector. Microsoft announced approximately 6,000 layoffs around the same time, while other tech giants, including Meta, Google, and Salesforce, have implemented comparable cost-cutting measures. This industry-wide trend reflects a post-pandemic adjustment period where companies are correcting for aggressive hiring during 2020-2021.