Amazon plans to eliminate 18,000 corporate and technology jobs in a significant expansion of its cost-cutting plans, the company’s chief executive officer Andy Jassy said in a statement. email to employees on Wednesday.
The company 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 first layoffs focused primarily on the company’s equipment and book organizations. Buyout offers were also made to resign employees in Human Resources.
The new wave of layoffs will begin on January 18, Mr Jassy said, and will focus on human resources as well as the larger division referred to as Amazon Stores. This includes the teams behind Amazon’s main online site, its vast field operations and warehouses, its physical stores and other consumer teams.
The 18,000 in total cuts represent about 6 percent of Amazon’s corporate work force. Late last year, managers at various groups said they had been told to prepare for possible layoffs, and prepared for staff cuts.
Hourly warehouse workers are not included in the layoffs. Amazon has typically reduced those jobs through high attrition.
“These changes will help us pursue our long-term opportunities with a stronger cost structure,” Mr. Jesse wrote. “However, I am also optimistic that we will be as inventive, resourceful and lean into this time when we are not hiring en masse and eliminating certain roles.”
The company more than doubled its work force during the pandemic as customers flocked to online services. It had about 1.5 million employees at the end of September.
However, Amazon’s growth has slowed to its lowest rate in two decades, and Mr. Jesse is grappling with the company’s over-expansion. Amazon recently warned investors that growth could be slowing to its slowest pace since 2001.
Mr Jassy said the extended cuts were a result of Amazon’s annual business review, which this year “has been more difficult given the uncertain economy and the rapid hiring we have done over the last several years.”
wall street journal Reported Earlier on Wednesday, Amazon detailed its planned job cuts.
Amazon is among a number of tech companies that have announced significant cutbacks recently. Veteran business software company Salesforce said on Wednesday it planned to lay off 10 percent of its workforce, or about 8,000 employees, amid concerns about the economy. Other companies, including Meta and Twitter, have made major layoffs in recent months.
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