Layoffs Continue: Books and Kindle Departments Join the Streamlining Queue
On June 6, Amazon confirmed a new round of layoffs in its books business, affecting employees from Goodreads and Kindle e-book operations. According to a company spokesperson, the layoffs are small in scale, affecting fewer than 100 people, with the aim of "enhancing efficiency and simplifying the operational structure."
This adjustment marks Amazon's latest step in its ongoing process to optimize its organizational structure. The company stated that the positions were eliminated to better serve business growth goals and future roadmaps.
Multi-Department "Slimming" Strategy Continues
In recent years, Amazon has frequently conducted small-scale layoffs. The impact on the books business indicates that the layoff strategy is gradually extending to content and user community platforms.
Prior to this, layoffs had already been implemented in various departments at Amazon, including Devices & Services, the Wondery podcast team, retail store management, and communications staff. Despite ongoing layoffs, Amazon's total number of employees in the first quarter still increased by approximately 4,000 compared to the fourth quarter of last year.
An Amazon spokesperson added that although these decisions are "difficult choices," they are necessary steps for long-term business optimization and enhancing organizational flexibility.
CEO Jassy Streamlines the "Bureaucratic System"
Since assuming the role of CEO, Andy Jassy has consistently emphasized reducing hierarchical levels and improving execution efficiency. He has publicly stated that the company faces a "management structure that is overly complex" and needs timely adjustments to restore flexibility and execution capability.
Over the past two years, in the context of macroeconomic pressure and slowing growth in the e-commerce business, Jassy has vigorously promoted internal streamlining, making layoff strategies an important part of his reform plans.
What Signal Does the Book Business Layoff Send?
The book business holds a unique position in Amazon's overall ecosystem. The company started as an online bookstore, with Kindle and Goodreads playing significant roles in its reading product matrix. Therefore, layoffs in this sector are particularly noteworthy. Industry insiders believe this could indicate Amazon is reassessing the strategic value and profitability of its content platforms.
Some analysts point out that Goodreads has seen slow progress in user growth and product innovation in recent years, while the Kindle content ecosystem faces ongoing challenges from competitors like Apple Books and Kobo. These layoffs may reflect the company's internal inclinations towards adjusting the future direction of these businesses.
Investor Reaction Calm, Stock Price Slightly Rebounds
Despite announcing the layoffs, Amazon's stock price rose by 0.3% in Thursday's trading, closing at $207.91. Since early 2025, the stock has fallen by 5.6%, and the market's reaction to its layoff measures has been relatively calm.
Investors generally believe that streamlining the organizational structure helps manage costs and improve long-term profitability, especially against the backdrop of the tech industry collectively entering a "quality and efficiency improvement" cycle.
