Following the 18,000 positions that were eliminated in January, Amazon CEO Andy Jassy announced on Monday that he was eliminating 9,000 more from the workforce of the online retail giant. In a memo to the workforce, Jassy stated, “With the uncertain economy… and the uncertainty that remains in the foreseeable future, we have chosen to be more streamlined in our costs and staffing.
Compared to other digital giants, Amazon’s layoffs represent a lower portion of the company’s overall workforce, which reached 1.5 million employees in December 2022. In what CEO Mark Zuckerberg has dubbed the company’s “year of efficiency,” Meta has cut up to 25% of its estimated employees in only a few months as the American tech sector continues to contract.
Amazon’s Jassy informed his staff that additional layoffs were required as a result of additional departmental feedback and the company’s efforts to reduce costs following years of continuous hiring.
As consumers in Amazon’s key markets went to the internet for shopping and entertainment during the coronavirus outbreak, it gave the Seattle-based corporation a huge boost. “Rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,” Jassy said.
Jassy informed the workers that the layoffs will mostly affect Amazon’s cloud computing, human resources, advertising, and Twitch video game streaming operations.
The layoffs are part of the giant’s cost-cutting campaign that also saw a pause in its plans to open a new company headquarters in the Washington DC area, though the company said this was only a temporary measure.
