Amazon extends corporate layoffs to 18,000 jobs
Amazon plans to cut 18,000 business and technology jobs as part of a major expansion of its cost-cutting plans, CEO Andy Jassy said in a message to employees on Wednesday. .
The company previously planned to lay off about 10,000 workers between the end of last year and the beginning of this year, The New York Times reported in mid-November. Early dismissal is mainly aimed at the company’s device and book organizations. Human resources staff also received layoff offers.
A new wave of layoffs will begin on Jan. 18, with Mr. Jassi focusing on human resources as well as Amazon’s larger division, known as Stores. This includes the teams behind Amazon’s main online site, its extensive field operations and warehouses, physical stores and other customer groups.
The 18,000 total removals represent about 6% of Amazon’s workforce. Late last year, managers at various groups said they had been told to prepare for possible layoffs and that staff were preparing for layoffs.
Hourly warehouse workers are not included in the layoff. Amazon typically cuts these jobs due to high attrition.
“These changes will help us achieve our long-term opportunities with a strong cost structure,” Jassi wrote. “However, I’m also optimistic that we’ll be more inventive, resourceful and reckless in this time when we’re not hiring hard and we’re cutting out certain roles.”
The company has doubled its workforce during the pandemic as customers flock to online services. At the end of September, it had about 1.5 million employees.
But Amazon’s growth has slowed to its slowest pace in two decades, and Mr. Jesse has given up on the company’s over-expansion. Amazon recently warned investors that growth could weaken to its slowest pace since 2001.
Mr Jassi said the massive cuts were the result of Amazon’s annual business review, which this year was “more challenging given the uncertain economy and we’ve been hiring rapidly over the last few years”.
The Wall Street Journal reported earlier Wednesday that Amazon had extended the planned layoffs.
Amazon is one of a number of tech companies that have announced deep cuts recently. Enterprise software giant Salesforce said Wednesday it plans to cut 10% of its workforce, or about 8,000 employees, due to concerns about the economy. Other companies, including Meta and Twitter, have seen big layoffs in recent months.
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