2023-03-22 13:35:45
According to Bloomberg, Amazon is conducting the next round of layoffs with 9,000 affected employees. Earlier, in January, the e-commerce giant laid off 18,000 people.
On March 20, CEO Andy Jassy announced the above information and said that the cuts will happen in the coming weeks, affecting mainly employees in the cloud computing, human resources, advertising and services segments. Twitch livestream service.
“Given the current volatile economy and the uncertainty in the near future, we have chosen to be more rational in terms of costs and headcount. This is not an easy decision, but we believe it is the best for the company in the long term,” Jassy wrote in an internal post. According to the 55-year-old CEO, teams will need to determine which locations to remove and mid to late next month.
CEO Andy Jassy.
Meanwhile, the upcoming CEO of Twitch said that about 400 employees of this division will be cut. An Amazon spokesperson declined to disclose details of the company’s distribution of layoffs.
Amazon has laid off a large number of employees after a massive hiring spree during the pandemic as demand for online shopping surged. The first wave of layoffs hit the company’s HR, retail, and equipment teams the hardest.
Amazon’s cuts were announced less than a week after Facebook’s parent company Meta announced a second round of layoffs, affecting 10,000 employees and halting hiring for 5,000 new positions. CEO Mark Zuckerberg told employees in a recent meeting that layoffs and restructurings can drag on for years.
Many other tech giants have cut large numbers of employees in recent months, including Alphabet (Google’s parent company), Microsoft, and Dell. From the start of the year to the beginning of February, more than 67,000 jobs were eliminated across the industry, according to Bloomberg data.
It’s a continuation of a worrying trend from 2022, when the tech sector announced 97,171 job cuts, up 649% year-over-year, according to consulting firm Challenger, Gray & Christmas Inc.
A statistic shows that Amazon employed 1.54 million people worldwide at the end of December last year. Most of them are hourly workers, specializing in packaging and transporting products in the warehouse. Before the first round of layoffs, the company had about 350,000 employees.
The current slowdown in growth has affected cloud computing, which has generated most of Amazon’s profits in recent years. Chief Financial Officer Brian Olsavsky said he expected this to last for “the next few quarters”. The expansion of Amazon’s lucrative advertising business has also slowed.
Jassy said the latest cuts come after teams completed a stage in the company’s annual planning process. He said that over the past few years, most of Amazon’s business units have significantly increased their rankings.
“The most important tenet of our annual plan this year is leaner. That allows us to still invest heavily in customer experience”, said the CEO.
Source: Bloomberg
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