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Amazon cuts more than 300 jobs at Zappos

Amazon laid off more than 300 employees at its subsidiary Zappos last month as part of the online retailer's huge job cut plan.

The online shoe and clothing retailer cut about a fifth of its total workforce in January.

Sources said customer service representatives were included in those who had lost their jobs.

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A company spokeswoman, Laura Davis, said the cuts were "ultimately made to ensure Zappos is set up to continue to provide an exceptional customer experience, long-term.”

She added the moves were part of the firm’s regular business planning.


Amazon bought the firm for $1.2 billion in 2009.

It now operates independently of Amazon, but the reductions come shortly after Amazon's huge cuts last month, where it eliminated more than 18,000 jobs.

Amazon CEO Andy Jassy said in a note to employees on January 4 that it cut most roles in the Amazon Stores, People Experience, and Technology Solutions units.

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In the memo, he stated it had "hired rapidly" in recent years, but this year's review was "more difficult" due to the economic crisis.

Boosted Commerce, an Amazon-branded aggregator, also laid off 16 staff last month.

A Boosted Commerce representative said 20 percent of its full-time employees based in the US were impacted. 

The representative also said it was part of a bid to focus on its most profitable areas, like wholesale and retail brands.

Amazon and Zappos didn't immediately respond to requests for comments.

Source: Fortune

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