Amazon is laying off some employees in its Buy with Prime unit, the company confirmed, as it continues to look for ways to trim costs.
The cuts affect fewer than 5% of staff in the Buy with Prime division, Amazon said. Buy with Prime is a service that lets online stores offer the same two-day shipping benefits available to Prime subscribers. Amazon has expanded the program since its launch in April 2022, including tie-ups with Shopify and Salesforce.
Amazon didn’t say how many staffers are in its Buy with Prime segment.
“We regularly review the structure of our teams and make adjustments based on the needs of the business and, following a recent review, we’ve made the difficult decision to eliminate a small number of roles on our Buy with Prime team,” an Amazon spokesperson said in a statement.
The spokesperson said Buy with Prime remains “a top priority for Amazon” and the company plans to continue investing “significant resources” in the program.
Some of the affected employees worked in Amazon’s multichannel fulfillment unit, which sits alongside Buy with Prime under the “Project Santos” organization, overseen by Peter Larsen, a longtime vice president at the company, a person with knowledge of the cuts said. Multichannel fulfillment allows merchants to ship and store products using Amazon’s services regardless of whether they’re selling on the home site.
Amazon has cut more than 27,000 jobs across the company as part of rolling layoffs that began in late 2022. Job reductions have continued this year, with Amazon letting go staffers in its Prime Video, MGM, Twitch, Audible and Amazon Pay units last week. Other tech companies including Google, Discord, Xerox and Unity have also announced layoffs since the start of the new year.
Amazon said it’s assisting Buy with Prime employees who were laid off in finding new roles elsewhere within the company. Employees will continue to receive their pay and benefits for at least 60 days, and they will be eligible for a severance package.
WATCH: Amazon lays off hundreds of roles across Twitch, Prime Video and MGM Studios
Don’t miss these stories from CNBC PRO:
- Tesla versus BYD: Analysts prefer one of them — giving it up to over 70% upside
- Goldman says small caps to beat large caps this year. 10 cheap smaller stocks to buy
- DoubleLine’s Gundlach sees ‘very painful’ economic downturn, S&P 500 may be forming ‘double top’
- ‘One of the best valuations for AI’: Buy the dip in this Big Tech stock, strategist says