Amazon announced on Wednesday January 4 that it would cut off more than 18,000 employees, which surpasses the first estimate made by the online company in 2022.
“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” CEO Andy Jassy wrote in a memo to employees that the company published on its blog.
“However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me”, he added
In 2023, tech companies are continuing where they left off in their preparations for a protracted economic crisis. Salesforce announced on Wednesday January 4, that it would lay off nearly 7,000 workers of its workforce. Salesforce and Amazon both acknowledged that they hired too quickly during the COVID outbreak.
As more customers switched to online ordering, Amazon particularly recognized that it had increased the number of employees in its facilities too quickly. 1.54 million people were employed by the corporation at the end of the third quarter.
Andy Jassy stated in November 2022 that Amazon would remove positions, including those in its physical stores, in its devices and books divisions, and in its stores themselves. Amazon was planning to cut off about 10,000 of its employees, according to reports at the time but the numbers have increased as of now.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote.
“These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.”
Starting on January 18, Amazon aims to notify workers who will lose their employment. Jassy stated, emphasizing that the People, Experience, and Technology (PXT) and store groups will be the most affected.
