Washington: Amazon announced that it will cut more than 18,000 jobs from its workforce, citing “the uncertain economy” and the fact that the online retail giant had “hired rapidly” during the pandemic.
“Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles,” said CEO Andy Jassy in a statement to his staff. The company had announced 10,000 layoffs in November.
Jassey said the company’s leadership was “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly.
“We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support,” he said.
Some of the layoffs would be in Europe Jassey said, adding that the impacted workers would be informed starting on January 18.
He said the sudden announcement was being made because “because one of our teammates leaked this information externally.”
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said.
The Seattle-based company also is trying to align excess capacity with cooling demand. One effort includes trying to sell excess space on its cargo planes, according to people familiar with the matter.
The first wave of cuts landed heaviest on Amazon’s Devices and Services group, which builds the Alexa digital assistant and Echo smart speaker, among other products. The group’s chief told Bloomberg last month that layoffs in the unit totaled less than 2,000 people, and that Amazon remained committed to the voice assistant.
Some recruiters and employees in the company’s human resources group were offered buyouts. Jassy told employees in November that more cuts would come in 2023 at its retail and HR teams.
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