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04 June 2023

Amazon to lay off a further 9,000 employees on top of 18,000 in January

By Reuters

CEO of Amazon, Andy Jassy, announced on Monday that the company would cut another 9,000 jobs as a result of layoffs in the coming weeks.

‍The layoffs, which started in November and continued into January as originally indicated, are in addition to the reduction. More than 18,000 employees were affected by that round, the majority of whom worked in the company's retail, devices, recruiting, and human resources departments.

‍Amazon decided to reduce staff numbers in an effort to reduce costs. The "uncertainty that prevails in the foreseeable future" and the economy were both taken into consideration, according to Jassy. The corporation has just finished "OP2," or operational phase 2, of its annual budgeting process.

‍This year, "the overarching idea of our yearly planning was to be leaner while doing so in a way that allows us to still invest robustly in the critical long-term customer experiences that we believe may substantially improve customers' lives and Amazon as a whole," said Jassy.

‍In the memo, Jassy stated that the most recent round will largely affect Amazon's cloud computing, human resources, advertising, and Twitch livestreaming companies.

‍After going on a hiring binge during the Covid-19 outbreak, Amazon is currently suffering the largest layoffs in corporate history. By the end of 2021, the company's global employment has increased from 798,000 in the fourth quarter of 2019 to over 1.6 million.

‍While it copes with the recession and declining growth in its primary retail operation, Jassy is also undergoing a thorough review of the company's spending. Amazon stopped hiring its corporate personnel, shelved certain test projects, and delayed the growth of its warehouses.

‍Jassy said he is still bullish about the company's "biggest businesses," retail and Amazon Web Services, as well as other, new divisions it continues to invest in, even though the company intends to operate more efficiently this year.