Amazon CEO Andy Jassy announced Monday that the e-commerce giant will cut an additional 9,000 jobs after completing the second phase of a strategic review.
According to Jassy, the positions will be eliminated over the next few weeks and will affect roles in the Amazon Web Services (AWS), People, Experience and Technology (PXT), Advertising and Twitch departments. The company’s senior management team expects to make final decisions on which jobs will be cut by “mid to late April,” the CEO said.
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Affected employees will receive a separation allowance, transitional health insurance benefits and support with external job placement, said Jassy.
“In the years leading up to this year, most of our businesses added a significant number of employees,” Jassy said. “This made sense given what was going on in our businesses and in the economy at large.”
However, the CEO went on to say that given the “uncertain economy we live in” and the “uncertainty that exists in the near future,” Amazon has opted to “tighten” its costs and headcount more.
“The overarching tenet of our annual planning this year has been to be leaner and to do so in a way that allows us to continue to invest heavily in the most important long-term customer experiences that we believe transform customers’ lives and Amazon can meaningfully improve overall. ‘ added Jasy.
This new round of layoffs comes just months after Amazon amended its original November layoff announcement in January, updating the total number of layoffs from 10,000 to 18,000.
Jassy announced the downsizing in a memo to employees in January, saying the planning and review process for 2023 has been more difficult “given the uncertain economic climate” and the company’s rapid hiring in recent years.
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The November reductions impacted the company’s Devices and Books businesses and included voluntary reduction offers for some employees in the PXT teams. The January layoffs impacted employees at Amazon stores and the PXT organization.
After months of post-pandemic gains, many tech and retail companies like Amazon, which hired too many people in 2021 and early 2022, are now cutting staff as inflation has eroded many profits. Even the added concern of a looming recession isn’t doing anything to calm fears as companies look for a way forward.
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