Amazon will eliminate over 18,000 positions in 3 months, CEO says

Mass layoffs are rare at Amazon, but the company had several job cuts in 2018 and 2001 during the dot-com crash.

SEATTLE — Amazon CEO Andy Jassy announced in a post Wednesday that the tech giant will be eliminating more than 18,000 roles.

The total number of layoffs includes those announced in November 2022, with the second tranche expected to begin in mid-January, Jassy said.

He said Amazon typically waits for notice of layoffs to the public after talking to affected people, but an employee disclosed the information before the company could contact affected employees.

Jassy said some groups are affected, but the majority of the roles removed will go to the PXT and Amazon Store organizations.

“This is a big deal for Amazon, they’ve never had such a large-scale layoff and if you just think about the last time they had a big layoff, [they were a] smaller companies, during the Great Recession,” said Spencer Soper, a Bloomberg technology reporter who has covered Amazon for a decade.

“They have 1.5 million employees globally right now, so 18,000 may sound like a small number, but it is one of the most important,” Soper said. “When you have a company that’s growing, growing, adding facilities, adding people like crazy, then all of a sudden – put the brakes on, don’t build a lot of new things, have too much capacity, have too many people…that’s their common admission.”

The online retail giant, like other tech and social media giants, has made significant profits during the COVID-19 pandemic, as stay-at-home shoppers buy a variety of items online. than. However, revenue growth has slowed as the worst of the pandemic eases and consumers become less dependent on e-commerce.

The Seattle-based company reported two consecutive losses in 2022, mainly due to a write-down of its stock investment in electric vehicle startup Rivian Automotive. The company returned to profitability in the third quarter, but investors were bleak about weaker-than-expected revenue and lackluster forecasts for the current quarter, which is usually good for retailers. due to the year-end shopping season.

“This latest round, they’re basically talking about their retail division — Amazon’s oldest business,” Soper said. “It started as an online bookstore, selling online, it’s still its biggest business, it’s bringing in the most money – it’s also the most mature business, so it’s not growing as fast as some other thing like cloud computing, or video streaming endeavors, [and for PXT], it’s basically the people in HR, the recruiters, the reception people – if they didn’t hire that many people, those people wouldn’t have anything to do. So it makes sense for them to go.”

Amazon plans to talk to affected employees starting January 18, Jassy said in her post. The company will provide severance payments, transitional health insurance benefits, and outside employment assistance.

“The S-team and I are acutely aware that removing this role is difficult for everyone, and we do not take lightly or underestimate the impact these decisions can have on the lives of those affected. How to benefit,” Jassy said in the post.

Amazon did not confirm to KING 5 on Thursday how many of the 18,000 cuts will take place in Washington.

In November, Amazon began mass layoffs across its corporate ranks, becoming the latest tech company to cut its workforce amid growing concerns about the broader economic environment. . The company has laid off about 260 workers at various facilities that employ data scientists, software engineers, and other corporate workers. Those job cuts will go into effect January 17.

Mass layoffs are rare at Amazon, but the company had several job cuts in 2018 and 2001 during the dot-com crash. On the warehouse side, the e-commerce giant often cuts its workforce through attrition.

The tech giant’s CEO said Wednesday that eliminating the role will help the company “pursue our long-term opportunities with a stronger cost structure.”

“To those affected by these cuts, I want you to know how grateful I am for your contributions to Amazon and the work you’ve done on behalf of customers,” Jassy said. “You’ve made a meaningful difference in the lives of so many customers. For those who will continue their journey with us, I look forward to partnering with you to continue making their lives better. customers better and easier every day and never stop being creative to do it Amazon will eliminate over 18,000 positions in 3 months, CEO says

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