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Amazon Cuts Over 100 Customer Service Managers In Latest Restructuring

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Amazon has recently cut over 100 customer service manager positions in a new round of job cuts under CEO Andy Jassy. 

This restructuring targets middle management roles, specifically Level 5 and Level 6 managers in call centers and virtual settings, primarily in the US and India. 

Sources said some managers were surprised when their computer systems abruptly shut down during the workday.

One affected employee expressed frustration to Fortune, saying: “We have had more and more work added, 12-16 hour days, maximum stress to be cut free without a thought or a warning.”

An Amazon spokesperson said restructuring reduces the gap between customers and customer service leaders. 

"We did not make these decisions lightly, and we are committed to supporting employees whose roles are affected during their transition"

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Although the layoffs impacted fewer than one percent of Amazon’s global customer service workforce, it remains unclear what percentage of the management team was affected.

Amazon spokesperson Montana MacLachlan said: "As part of a shift in how our Worldwide Customer Service organization is structured, we’ve identified a relatively small number of roles that are no longer required.

"We did not make these decisions lightly, and we are committed to supporting employees whose roles are affected during their transition."

Amazon said affected US employees would receive pay and benefits for 60 days and severance.

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These layoffs come shortly after Amazon reported strong financial results for the first quarter, with over $143 billion in revenue and $10 billion in profit. 

Under Jassy’s leadership, Amazon has reached a point where it can invest heavily in long-term projects like generative AI while also achieving significant profits.

This has been partly due to Jassy's approach of overseeing substantial layoffs and emphasizing cost-cutting measures across various divisions.

Amazon divisions such as AWS, Prime Video, and Twitch have also seen significant staff reductions this year. 

Additionally, Amazon has shifted major logistics costs to third-party merchants through new seller fees.

Jassy told Wall Street analysts during the company's recent earnings call: "We don’t believe that we’re at the end of what we can do in terms of improving our cost structure on the store side."

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