Amazon announces 2nd round of layoffs, 9,000 employees fired
- ByStartupStory | March 21, 2023
Amazon has announced the layoff of 9,000 more employees. The company’s CEO Andy Jassy in a message sent to impacted employees said, that Amazon is going through a tough times and the step is taken as preventive measures to reduce its costs. This marks the second round of layoffs this year, with the previous one in January resulting in 18,000 job cuts. In total, Amazon has now let go of 27,000 employees.
In an email sent to employees, Amazon’s CEO Andy Jassy announced that approximately 9,000 positions will be eliminated in the coming weeks, primarily in AWS, PXT, Advertising, and Twitch.
Jassy acknowledged that this was a difficult decision but emphasised that it was necessary for the company’s long-term success. He explained that the company had overhired in recent years and needs to be more judicious with its resources due to the current economic climate. Jassy also noted that the cost savings from these layoffs would be invested in other areas of the company for greater benefit in the future.
Jassy explained that as “Amazon’s internal businesses prioritised customer needs, some roles were reduced, some employees were moved to different initiatives, and new openings were created where there was a skills gap in the existing team. This led to the first round of layoffs in January, with an additional 9,000 roles being cut after the completion of the second phase of planning this month”.
Jassy has confirmed that Amazon plans to finalise the current round of layoffs by mid to late April, and has stated the company’s commitment to supporting impacted employees. Amazon will be offering packages that include a separation payment, transitional health insurance benefits, and assistance with finding new job opportunities.
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