According to a statement sent to employees on Monday by CEO Andy Jassy, Amazon will let go of another 9,000 workers in the upcoming weeks.
The layoffs that started in November and continued into January are added to the previously announced reduction. Its retail, devices, recruiting, and human resources departments were most heavily impacted, totaling more than 18,000 people.
In an effort to reduce costs, Amazon decided to lay off more workers. The “uncertainty that exists in the near future” was taken into account, according to Jassy, as well as the economy. In-house referred to as “OP2,” the company has just finished the second stage of its annual budgeting process.
According to Jassy’s memo, the most significant effects of the most recent round will be seen by Amazon’s cloud computing, human resources, advertising, and Twitch livestreaming companies. Dan Clancy, the CEO of Twitch, stated that the most recent wave of job cuts at Amazon would result in the termination of about 400 individuals. Twitch’s user and revenue growth, according to Clancy, hasn’t “kept pace with our expectations” because of the recession.
After embarking on a hiring binge during the Covid epidemic, Amazon is currently facing 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 the company deals with the recession and sluggish growth in its primary retail operation, Jassy is also taking on a comprehensive assessment of the organization’s costs. In addition to cutting certain experimental initiatives and slowing warehouse development, Amazon halted hiring for its corporate personnel.
Jassy stated he is still enthusiastic about the company’s “biggest companies,” retail and Amazon Web Services, as well as smaller, emerging divisions that continue to justify investment, despite the company’s plans to operate more efficiently this year.
Alexis Boutilier is from Vancouver, British Columbia. She has a high interest in all things tech and loves to stay engaged on all the latest appliances and accessories.