Amazon has cut an undisclosed number of jobs in its Amazon Restaurants food delivery service, though the company insists it has no intention of retreating from the crowded culinary courier market.
An Amazon spokesman confirmed layoffs within Amazon Restaurants but would not discuss the number of jobs affected or the overall size of the group. GeekWire received multiple tips this week that Amazon Restaurants recently laid off approximately 50 people, a figure we were unable confirm independently.
The company released the following statement in response to GeekWire’s inquiry: “Amazon employs over 500,000 people worldwide, and we’re continuing to hire across the company. We are constantly evaluating headcount needs to ensure we’re dedicating resources efficiently and effectively, so it’s common for there to be minor fluctuations in headcount in different parts of the company.”
Amazon added that it attempts to find other positions within the company for employees affected by layoffs.
Amazon Restaurants debuted in its first city, Amazon’s hometown of Seattle, in 2015. Today, Amazon Restaurants is available for Prime members in 20 U.S. cities as well as London.
Amazon faces a gaggle of competitors in the restaurant delivery business, including Postmates, Uber Eats, DoorDash, GrubHub and many more. It’s unclear how Amazon Restaurants is faring financially, but many of these services are reportedly losing money.
In September, Amazon teamed up with online ordering company Olo to make it easier to add new restaurants to its platform. The alliance integrates orders directly into restaurants’ sales systems, rather than forcing them to use separate devices to manage online orders from different delivery services.