Amazon confirms its massive layoffs will affect 18,000 employees
Amazon’s ongoing layoffs will affect approximately 18,000 workers, according to a memo from CEO Andy Jassy, who said the “majority” of the jobs being cut will be in Amazon stores and the -organizations People, Experience and Technology.
Amazon will have laid off 18,000 employees between the cuts in November and the cuts announced today
News of the extended layoffs was originally reported by That one Wall Street Journal, which they said would affect “more than 17,000 workers”. Jassy’s email said that the company “generally waits to communicate these findings until we can speak to those directly affected,” but that it is sharing the news because “one of our colleagues shared this information externally. ” . He also says that on January 18, the affected workers started to find out.
In recent months, Amazon admitted it was consolidating “some teams and programs” in its hardware and services division, as SVP Dave Limp put it in a November email. However, the company had never officially confirmed the original number. While CEO Andy Jassy told workers there will be “further role cuts in 2023 as leaders continue to make adjustments,” the company has so far been very vague about how many positions will be affected. .
In October, Amazon said it returned to double-digit sales growth thanks to its “biggest Prime Day event ever” in July. It also promised investors that it was making “continuous progress” in cutting costs. On January 3, it reported to the SEC that it had taken out an $8 billion loan to be used for “general corporate purposes.” This was announced by an unnamed spokesperson TechCrunch that the company “used various financing options to support investments, debt repayment, acquisitions and working capital needs” while navigating an “uncertain macroeconomic environment. “
According to the company, it is “working to support those affected and is offering packages that include separation allowance, transitional health insurance benefits and support with external employment”.
This makes Amazon’s cut one of the biggest yet by a tech giant. During these last months, Meta announced that it will lay off around 11,000 employees, while companies such as Intel announced that they will make significant reductions during the year. Earlier Wednesday, Salesforce said it would cut about 10 percent of its workforce, equivalent to about 8,000 employees, while Vimeo said it would lay off 11 percent of its workforce.
Update January 4th 8:25pm ET: Updated to reflect Andy Jassy confirmed the number of staff axed and provided information on which teams would be affected