Amazon to lay-off 18,000 roles

Amazon will lay-off more than 18,000 roles in a bid to reduce its cost. Moreover, the company’s chief executive stated in a public staff note that these layoffs will affect company’s e-commerce and human resources organizations.

Job cuts will commence from January 18

Amazon has become the latest tech company which have announced job cuts. The job cuts amount to approximately 6 percent of company’s corporate workforce and will commence from January 18, 2023. Furthermore, this will the biggest workforce reduction drive in Amazon’s history. Currently, Amazon has an existing workforce of roughly 300,000 corporate workers. Overall, Amazon has more than 1.5 million workers including warehouse staff. Hence, it makes Amazon the second largest private employer in United States after Walmart.

CEO’s message

“[We] are deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted. 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. Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure.” CEO Andy Jassy shared announcement in a message with the employees. Furthermore, Jassy stated that the company did not intend to release the layoffs decision this early. However, they had to announce the job cuts after a teammate leaked this information.

Layoffs will affect multiple units

Amazon stated that most of the layoffs will take place at Amazon Stores, including Amazon Fresh and Amazon Go. Moreover, the job reductions will also affect employees working in people, experience, and technology. In November, Amazon’s CEO told the staff that they will cut jobs in wake of worsening economic conditions. Secondly, the tech giant hired massively during COVID times when demand for its services increased rapidly. However, the slowdown in economy has negatively affected Amazon’s revenues.

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