Amazon announced on Wednesday that it would minimize over 18,000 jobs, which is more than the e-commerce giant said it would do last year.
The Wall Street Journal had previously reported on the la off, which Amazon claimed pre-empted its planned announcement.
CEO Andy Jassy stated in a memo to staff that the business posted on its blog, “We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted.” However, we decided it was better to share this news earlier so you could hear the details directly from me because one of our teammates externally leaked this information.
In 2023, tech companies are continuing where they left off in their preparations for a protracted economic downturn. Salesforce announced on Wednesday that it would lay off over 7,000 workers, or 10% of its workforce. Salesforce and Amazon both acknowledged that they hired too quickly during the pandemic.
As more customers switched to online ordering, Amazon acknowledged that it had increased the number of employees in its warehouses too quickly. 1.4 million people were employed by the company at the end of the third quarter.
Jassy stated in November that Amazon would eliminate positions across the board, including those in its physical stores, devices, and books divisions. At the time, CNBC reported that Amazon planned to let go of about 10,000 of its workers. The amount is higher right now.
Amazon has previously survived unstable and challenging economies, and we will do the same in the future, Jassy wrote. However, I’m also confident that we’ll be creative, resourceful, and resourceful this time when we’re not hiring widely and eliminating some roles. These changes will help us pursue our long-term opportunities with a stronger cost structure.
Starting on January 18, Amazon plans to notify employees who will lose their jobs, Jassy wrote, noting that the stores and People, Experience, and Technology (PXT) groups will see the most job cuts.