A Big Announcement of the Amazon CEO
Amazon.com Inc. will lay off over 18,000 people as part of a plan to reduce its workforce that was already public, CEO Andy Jassy said in a public staff note on Wednesday. by Jeffrey Dastin and Uday Sampath Kumar
He said that the layoff decisions Amazon will announce starting on January 18 will have a big effect on the company’s e-commerce and human resources departments.
The cuts affect about 6% of Amazon’s corporate workforce of about 300,000 people. This is a quick change for a company that recently doubled its base pay ceiling to compete more aggressively for talent.
Amazon has more than a1.5 million employees, which includes warehouse workers. This makes it the second-largest private employer in the United States, after Walmart Inc.
Its stock went up 2% after business hours.
In the note, Jassy said, “Annual planning has been harder because the economy is uncertain and we’ve been hiring a lot in the last few years.”
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Amazon is preparing for slower growth because its share price has dropped by half in the past year, and rising inflation has done businesses and consumers cut back on spending.
In November, the company started letting people go from its devices division. At the time, a source told Reuters that the company was aiming for around 10,000 cuts.
Layoffs. FYI, a site that keeps track of releases says that the tech industry lost more than 150,000 jobs in 2022, and that number is still going up. On Wednesday, Salesforce Inc. said it was going to lay off about 10% of its staff, which was almost 8,000 people as of October 31.
Amazon’s fortunes have taken a sharp turn for the worse. During the pandemic, delivering goods to locked homes was seen as important. After the pandemic, however, it became a company that had more workers than it needed. It has now laid off more people than Facebook’s parent company, Meta Platforms Inc., did last year.
The note from Jassy came after the Wall Street Journal said that over 17,000 jobs would be lost. He said that because of a leak, Amazon told the news to the public before telling the affected staff.
Amazon still has to file specific legal notices about mass layoffs and plans to pay severance.
“Amazon has survived uncertain and hard economies in the past, and we will continue to do so,” Jassy said.