Here’s the scoop!
- Amazon is planning to lay off 9,000 employees in the coming weeks, following the 18,000 layoffs in November 2022.
- CEO Andy Jassy announced the decision in a memo to the staff, citing the need to cut costs amid economic uncertainty.
- The areas of Amazon’s business that will be most impacted are cloud computing, human resources, advertising, and Twitch livestreaming.
Amazon has announced plans to lay off 9,000 employees in the coming weeks, following the layoff of 18,000 workers in November 2022. CNBC reports that CEO Andy Jassy made the announcement in a memo to the staff, stating that the company needs to cut costs due to economic uncertainty.
This decision comes as the company completes the second stage of its annual budgeting process, known as “OP2” internally.
Jassy emphasized the need to be “leaner” while still investing in key long-term customer experiences. However, the layoffs are expected to impact several areas of Amazon’s business, including cloud computing, human resources, advertising, and Twitch livestreaming. These areas have reportedly been undergoing significant growth in recent years.
Amazon has been on a hiring spree during the COVID-19 pandemic, increasing its workforce from 798,000 in Q4 2019 to over 1.6 million by the end of 2021.
However, the company is now facing sluggish growth in its core retail business and is conducting a thorough analysis of its expenses under Jassy’s leadership.
The company has stopped hiring for its corporate workforce, shelved some test projects, and slowed the growth of its warehouses.
Despite the layoffs, Jassy remains optimistic about Amazon’s “largest businesses,” which include its e-commerce business and Amazon Web Services. The company still plans to invest in new divisions this year despite its plans to operate more efficiently.
Following the news of the layoffs, Amazon’s stock fell more than two percent during Monday’s afternoon trading.