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Amazon hires more than 100 customer service managers

Amazon on Wednesday eliminated middle management levels in some of its customer service divisions as part of an organizational restructuring. Fortune has learned.

The cuts affected more than 100 customer service executives in level 5 and 6 middle management positions, both in call centers and virtually. The affected employees mainly worked in the United States or India. Some managers first realized something was wrong when their computer systems suddenly shut down during their workday, according to one source.

“We had more and more work added, 12-16 hour days, maximum stress to release without any thought or warning,” said one of those affected by the cuts. Fortune.

An Amazon spokesperson said the restructuring was aimed in part at reducing the distance between customers and customer service executives. The layoffs affected less than 1% of Amazon’s global customer service workforce, the company said, but it’s unclear what percentage of the customer service division’s leadership team was affected.

“As part of a change in our global customer service structure, we have identified a relatively small number of roles that are no longer needed,” Amazon spokesperson Montana MacLachlan said in a statement. “We have not made these decisions lightly and are committed to supporting employees whose roles are affected during their transition. »

Affected U.S. employees will receive pay and benefits for 60 days, plus severance, the company said.

The layoffs come two weeks after Amazon reported strong first-quarter financial results, with more than $143 billion in revenue and $10 billion in profit. Amazon, under CEO Andy Jassy, ​​has finally reached an inflection point where it can both invest heavily in long-term bets like generative AI while still generating considerable profits. The company has reached this point, in part, thanks to Jassy’s willingness to oversee the largest corporate layoffs in Amazon history in recent years and demand that its executives continually reduce excess costs wherever possible . Amazon divisions such as AWS, Prime Video and Twitch have all cut hundreds of employees this year.

Amazon has also worked this year to shift significant logistics costs from its own books to those of third-party merchants, in the form of controversial new seller fees.

“(We) don’t think we’re at the end of what we can do in terms of improving our cost structure on the store side,” Jassy told Wall Street analysts during the earnings conference call. last month.

News of the customer service layoffs first appeared in a LinkedIn post by a former Amazon CEO named Tony Carr.

Are you an Amazon manager impacted by these layoffs or an Amazon employee with thoughts on this topic or a tip to share? Contact Jason Del Rey at jason.delrey@fortune.com, jasondelrey@protonmail.comor via the secure messaging application Signal at 917-655-4267. You can also send him a message on Linkedin or to @del Rey on X.

News Source : fortune.com
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