Amazon Lays Off 200 Employees in US Fashion and Fitness Division, Report Reveals

Amazon Cuts 200 Jobs in Fashion and Fitness Group Amid Expansion Efforts

Amazon is reportedly laying off approximately 200 employees in its Fashion and Fitness group, which is part of its broader effort to expand its apparel and fashion categories in the United States. This round of job cuts affects employees in San Diego, according to a report from Business Insider, citing internal communication shared on a Slack channel.

A company spokesperson confirmed the layoffs, stating, “We’re always looking at our team structures to ensure we’re best set up to move fast as we innovate for customers. We’ve adjusted parts of our North America Stores team because we believe this structure will better enable us to deliver on our priorities. As part of these changes, we’ve made the difficult decision to eliminate a small number of roles, and we’re committed to supporting affected employees through their transition.”

Despite Amazon’s ongoing efforts to grow its fashion business, the company faces significant challenges in this sector. One key hurdle is the customer preference for physically trying on clothing before purchasing, which contrasts with the growing trend of online shopping. Additionally, the cost of returns, particularly for items that don’t fit, can erode profit margins.

However, the job cuts appear to be unrelated to Amazon’s plans for its Try Before You Buy program, also known as Prime Wardrobe. This service allows customers to order clothing, try it on at home, and either purchase the items or return them if unsatisfied.

Amazon continues to adapt its strategies in the highly competitive fashion and fitness market, striving to meet the evolving preferences of its customer base while balancing operational efficiency. The company has promised to support the affected employees in their transition following the layoffs.

These recent job cuts are part of Amazon’s ongoing restructuring efforts as it seeks to refine its approach to online shopping, particularly in categories where physical retail experiences have traditionally played a dominant role.

Sources By Agencies

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