Amazon CEO Andy Jassy said in an email to employees on Wednesday that the company plans to cut 18,000 jobs in business and technology as part of a significantly expanded cost-cutting plan. Stated.
The company had previously planned to lay off about 10,000 employees late last year and early this year, The New York Times reported in mid-November. The initial layoffs focused primarily on the organization of the company’s devices and books. A human resources employee was also given a buyout offer to resign.
A new wave of layoffs will begin on Jan. 18, Jassy said, and will focus not only on the larger division Amazon calls its stores, but also on human resources. This includes the team behind Amazon’s main online site, the expansive field of his operations and warehouses, brick-and-mortar stores, and other consumer teams.
In total, the 18,000 job cuts represent approximately 6% of Amazon’s corporate workforce. Employees have been gearing up for cutbacks late last year, with managers from various groups saying they were asked to prepare for possible layoffs.
Hourly warehouse workers are not included in the layoffs. Amazon has typically cut back on these jobs due to high turnover.
“These changes will help us pursue long-term opportunities with a stronger cost structure,” Jassy wrote. “But I’m also optimistic that we’ll be creative, resourceful and crafty at a time when we haven’t expanded hiring or eliminated some roles.”
The company more than doubled its workforce during the pandemic as customers flocked to its online service. The number of employees as of the end of September is about 1.5 million.
But Amazon’s growth has fallen to its lowest level in 20 years, and Mr. Jassy is reeling from the company’s overexpansion. Amazon recently warned investors that growth could slow to its lowest pace since 2001.
Jassy said the wider job cuts are the result of Amazon’s annual business review.
The Wall Street Journal reported Wednesday that Amazon has expanded its planned job cuts.
Amazon is one of many tech companies to recently announce significant job cuts. Business software giant Salesforce announced Wednesday it plans to furlough his 10% of its workforce, or about 8,000 employees, amid concerns about the economy. Other companies, such as Meta and Twitter, have made massive layoffs in recent months.
