Amazon lays off some devices employees: Read the memo from hardware chief Dave Limp
David Limp, senior vice president of devices and services at Amazon.com Inc., presents the Amazon Echo Dot smart speaker during an unveiling event at the company’s Spheres headquarters in Seattle, Washington, U.S., on Thursday, Sept. 20, 2018.
Andrew Burton | Bloomberg | Getty Images
Amazon is laying off some employees in its devices and services unit, hardware chief Dave Limp wrote in a memo to workers on Wednesday.
The e-retailer is consolidating some teams and programs in its devices and services unit after “a deep set of reviews” of the business, Limp wrote. Amazon began notifying impacted employees yesterday, he added.
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“One of the consequences of these decisions is that some roles will no longer be required,” Limp said. “It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result.”
The job cuts are part of broader layoffs hitting Amazon as it stares down a worsening economic outlook. Amazon spokesperson Kelly Nantel told CNBC in a statement that several teams are making adjustments, which means “certain roles are no longer necessary.”
“We don’t take these decisions lightly, and we are working to support any employees who may be affected,” Nantel said.
The New York Times reported Monday that Amazon aims to cut up to 10,000 jobs across the company, with its devices, retail, and human resources divisions primarily being impacted as a result of the layoffs. The expected layoffs would represent the largest workforce cuts in its 28-year history.
The number of layoffs remains fluid because the decisions are being made business by business, according to a person familiar with the matter. While the cuts may total 10,000 people, there is no specific target for total job cuts, the person said.
CNBC previously reported the company began notifying employees Tuesday that they were being let go. Members of Amazon’s Luna cloud gaming and Alexa teams were among those laid off. The company has also laid off contracted workers in recruiting.
The job cuts are a sharp reversal for Amazon, which less than a year ago couldn’t find enough workers to staff its warehouses and went on a pandemic-fueled hiring spree. It nearly doubled its workforce between the end of 2019 and the end of 2021 from 798,000 employees globally to 1.6 million.
Here’s the full memo from Limp:
Folks,
At our last Town Hall in July, I talked a bit about the state of our economy. As you know, we continue to face an unusual and uncertain macroeconomic environment. In light of this, we’ve been working over the last few months to further prioritize what matters most to our customers and the business. After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required. It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result. I am incredibly proud of the team we have built and to see even one valued team member leave is never an outcome any of us want.
We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles. In cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support. We know people across the organization may be impacted differently by this news and will lead with compassion for all team members.
While I know this news is tough to digest, I do want to emphasize that the Devices & Services organization remains an important area of investment for Amazon, and we will continue to invent on behalf of our customers. Having gone through times like this in the past I know that when there’s a difficult economy, customers tend to gravitate to the companies and products they believe have the best customer experience and that take care of them the best. Historically, Amazon has done a very good job at this.
Thank you for the support and empathy that I know our team will show each other during this time. Please don’t hesitate to ping me or your manager if you have any questions.
Dave-
Technology
Malaysia will take ‘necessary action’ if its companies are involved in Nvidia fraud case: Trade minister
Nvidia’s headquarters on Feb. 26, 2025, in Santa Clara, California.
Justin Sullivan | Getty Images
Malaysia said it will take “necessary action” against Malaysian companies if they are found to be involved in a fraud case linked to the alleged movement of Nvidia chips from Singapore to China.
That comes after Singapore Law and Home Affairs Minister K Shanmugam reportedly said on Monday that the servers in the fraud case may have contained Nvidia’s artificial intelligence chips which were then sent to Malaysia.
On Feb. 27, Singapore charged three men with fraud, with local broadcaster CNA saying it understood the cases are linked to the alleged movement of Nvidia chips.
“The question is whether Malaysia was a final destination or from Malaysia, it went to somewhere else, which we do not know for certain at this point,” Shanmugam told reporters.
Speaking to CNBC’s “Squawk Box Asia” on Tuesday, Tengku Zafrul Aziz, Malaysia’s minister for investment, trade and industry said the country has no information that data center companies operating in Malaysia are “not using the chips that they are supposed to be using.”
He said such servers are imported by data center companies such as Microsoft, AWS and Google.
Singapore’s Shanmugam had said Nvidia’s chips were embedded in servers supplied by Dell and Supermicro to Singapore-based companies, before they went to Malaysia. He added that “there may have been false representation on the final destination of the servers.”
When asked if Malaysia knew where the servers were now, Zafrul replied, “we don’t know,” adding that Malaysian authorities are discussing with the data center companies and checking if they have gone to the right parties.
“Right now, there’s no such cases in Malaysia to date, and we are investigating if they are. We’ll definitely discuss this with Singapore and well, the companies would then have to be held accountable by the relevant authorities,” he added.
CNA also reported two Singaporeans were charged with criminal conspiracy to commit fraud on a supplier of servers.
Citing charge sheets, CNA said they allegedly made false representations in 2024 that the items would not be transferred to a person other than the “authorized ultimate consignee of end users.”
The charges also come after Reuters reported in late January that the U.S. Commerce Department is looking into whether Chinese AI startup DeepSeek has been using U.S. chips that are not allowed to be shipped to China.
Citing a person familiar with the matter, Reuters said “organized AI chip smuggling to China has been tracked out of countries including Malaysia, Singapore and the United Arab Emirates.”
Zafrul told CNBC that Malaysia will be checking the chips’ destination, but added, “what I can say today [is] the chips are not meant to be in Malaysia in the first place. So the question is, why is it going out of Singapore?”
Anne Wojcicki, co-founder and chief executive officer of 23andme Inc., during the South by Southwest (SXSW) festival in Austin, Texas, US, on Friday, March 10, 2023.
Jordan Vonderhaar | Bloomberg | Getty Images
23andMe‘s special committee of independent directors on Monday rejected CEO Anne Wojcicki’s proposal to take the distressed genetic testing company private.
Wojcicki submitted a proposal to the committee on Sunday, offering to acquire all of the company’s outstanding shares for 41 cents each, according to a filing with the U.S. Securities and Exchange Commission.
The stock plunged 33% on Monday to close at $1.47, down more than 99% from its peak in 2021.
Wojcicki and New Mountain Capital submitted a prior bid in February to take the company private for $2.53 per share. Days later, New Mountain told Wojcicki it was no longer interested in participating in a potential acquisition and would discontinue discussions, the filing said.
23andMe’s special committee said that Wojcicki’s proposal represented an 84% decrease from the prior offer and determined not to go forward, according to a release on Monday.
“The Special Committee has reviewed Ms. Wojcicki’s acquisition proposal in consultation with its financial and legal advisors, and has unanimously determined to reject the proposal,” the directors said.
23andMe didn’t immediately respond to CNBC’s request for comment.
Following a turbulent 2024, 23andMe announced plans in January to explore strategic alternatives, which could include a sale of the company or its assets, a restructuring or a business combination.
Wojcicki previously submitted a proposal to take the company private for 40 cents per share in July, but it was rejected by the special committee, in part because the members said it lacked committed financing and did not provide a premium to the closing price at the time.
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