Amazon to lay off 18,000 employees; 70% more than previously planned
- ByStartupStory | January 5, 2023
According to The Wall Street Journal, Amazon.com Inc. is laying off 18,000 employees. As the technology slump deepens, it is a significant jump than the previously planned figure i.e 10,000.
In a memo to employees on Wednesday, Chief Executive Officer Andy Jassy announced the layoffs, saying they were part of the company’s annual planning process. The cuts, which began last year, were expected to affect approximately 10,000 employees. The layoffs are concentrated in the company’s corporate ranks, primarily in Amazon’s retail division and human resources functions such as recruiting.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” he said. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
In November, the Seattle-based company began layoffs in its devices division, with a source telling Reuters at the time that Amazon was targeting 10,000 job cuts in gadgets, human resources, and retail. According to the Journal, the layoffs are concentrated in the firm’s corporate ranks, citing unidentified people familiar with the situation.
Though the prospect of layoffs has loomed over Amazon for months, the company has admitted that it hired too many people during the pandemic. The growing total indicates that the company’s outlook has deteriorated. It joins other tech giants in making significant cuts.
The first round of layoffs targeted Amazon’s Devices and Services division, which produces the Alexa digital assistant and the Echo smart speaker, among other products. Last month, the unit’s chief told Bloomberg that layoffs totaled less than 2,000 people, and that Amazon remained committed to the voice assistant. As per sources, some recruiters and employees in the human resources department were offered buyouts.
In other news, Salesforce Inc. announced earlier Wednesday plans to lay off about 10% of its workforce and reduce its real estate holdings.
Amazon.com, Inc. is a multinational technology company based in the United States that specializes in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It was founded by Jeff Bezos on 5th July, 1994.
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