Amazon intends to slash 18,000 corporate and technology roles in a dramatic extension of its cost-cutting efforts, according to an email sent to staff by CEO Andy Jassy on Wednesday.
According to a story from The New York Times in mid-November, the corporation had intended to let off around 10,000 workers between the end of 2017 and the start of 2018. The first layoffs were concentrated in the company’s gadgets and books departments. Human resources employees were also offered buyouts to quit.
The latest round of layoffs will begin on January 18, according to Mr. Jassy, and will target human resources and the massive Amazon segment known as Stores. This covers the teams responsible for Amazon’s primary web presence, its enormous field operations and warehouses, its physical shops, and other consumer-focused teams.
The 18,000 overall layoffs represent around 6% of Amazon’s corporate workforce. Late in the previous year, managers from a number of departments reported that they had been urged to prepare for possible layoffs, and staff had been preparing for the reductions.
Hourly warehouse employees are not affected by the layoffs. Amazon has often eliminated these positions via attrition.
Mr. Jassy stated, “These adjustments will let us pursue our long-term ambitions with a better cost structure.” “However, I am also hopeful that we will be imaginative, clever, and tenacious during this period when we are not recruiting extensively and cutting certain positions.”
During the epidemic, the firm more than quadrupled its workforce as clients rushed to internet services. It has around 1.5 million workers as of September’s end.
However, Amazon’s growth has slowed to its lowest pace in twenty years, and Mr. Jassy has been working to rein in the company’s overexpansion. Amazon has warned investors that the company’s growth might fall to its lowest level since 2001.
Mr. Jassy said that the additional layoffs were the consequence of Amazon’s annual business assessment, which “has been especially tough this year due to the uncertain economy and the fact that we’ve quickly grown our workforce over the last few years.”
The Wall Street Journal reported earlier on Wednesday that Amazon’s planned job layoffs had been increased.
Amazon is one of a handful of tech corporations that have lately announced large-scale layoffs. In response to economic worries, Salesforce said on Wednesday that it will be laying off around 8,000 people, or 10 percent of its workforce. In recent months, several businesses, notably Meta and Twitter, have seen significant layoffs.