Key Highlights
- Amazon to lay off additional 9,000 employees as part of cost-cutting measures due to economic uncertainty.
- The latest round of job cuts will primarily affect Amazon’s cloud computing, human resources, advertising, and Twitch live-streaming businesses, impacting around 400 employees.
In a memo sent to staff on 20th March, Amazon CEO Andy Jassy announced that the company will be laying off an additional 9,000 employees in the coming weeks. These cuts are in addition to the 18,000 layoffs that began in November 2022 and extended into January 2023, primarily affecting employees in retail, devices, recruiting, and human resource groups.
The decision to lay off more employees is part of Amazon’s effort to streamline costs, taking into account the current economic situation and the uncertainty of the future. The company recently completed the second phase of its annual budgeting process, referred to internally as “OP2,” and prioritized being leaner while still investing in key long-term customer experiences that can meaningfully improve customers’ lives and Amazon as a whole. Jassy emphasized this as the main objective of their annual planning this year.
Jassy Announced The Latest Round of Layoffs
Amazon CEO Andy Jassy has announced that the latest round of layoffs, which will primarily affect Amazon’s cloud computing, human resources, advertising, and Twitch live-streaming businesses, will impact approximately 400 employees in total. Twitch CEO Dan Clancy cited the economic downturn and slower-than-expected user and revenue growth as reasons for the cuts.
The layoffs come as Amazon tries to streamline costs and adjust to an economic downturn and slower growth in its core retail business. Jassy has frozen hiring in the corporate workforce, discontinued some experimental projects, and slowed warehouse expansion to manage expenses.
Despite the layoffs, Jassy remains optimistic about Amazon’s largest businesses, including retail and Amazon Web Services, and new divisions that warrant investment.
Amazon’s global workforce grew to over 1.6 million by the end of 2021, up from 798,000 in Q4 2019, as the company went on a hiring spree during the Covid pandemic. However, the company’s shares closed down 1% on 20th March.
