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Amazon announces the layoff of another 9,000 workers, up to a record 27,000


"It has been a difficult decision, but we believe it is the best thing for the company in the long term," says its CEO

The CEO of Amazon, Andy Jassy, ​​announced on Monday the dismissal of 9,000 more workers.

The job cuts are in addition to the 18,000 jobs that the company has already announced it was going to cut.

“It has been a difficult decision, but we believe that it is the best thing for the company in the long term,” Jassy said in a public communication to the staff.

The new layoffs will be concentrated in the cloud computing, human resources, advertising and Twitch divisions.

With this round, the layoffs announced by the e-commerce and cloud computing giant amount to 27,000, a record number in the history of the sector, and once again exceed those of Meta, which had stood out with the round of cuts announced last week.

It is the largest of all technology companies in absolute terms, although in relative figures it accounts for less than 2% of all employees.

"Given the uncertainty of the economy in which we live and the uncertainty that exists in the near future, we have chosen to rationalize our costs and our personnel," says Jassy in his statement.

“The overarching tenet of our annual planning this year has been to be more agile while doing it in a way that allows us to continue to invest heavily in key long-term customer experiences that we believe can significantly improve their lives and those of Amazon as a whole ”, he adds.

Amazon's CEO explains that as the company's businesses evaluated what mattered most to customers, they made decisions to reorder priorities that sometimes led to reducing functions, sometimes moving people from one initiative to another, and sometimes to create new openings where current team members did not have the right skills.

“This initially led us to eliminate 18,000 positions (which we shared in January);

and, as we completed the second phase of our planning this month, it led us to these further reductions of 9,000 roles (although you will see limited hires at some of our companies in strategic areas where we have prioritized allocating more resources),” concludes Jassy.

The head of Amazon, who replaced the founder, Jeff Bezos, justifies that all the layoffs were not announced at the same time in which not all the teams had finished their analyzes on time.

In fact, he acknowledges that it is still not clear who will be fired, which opens up a few weeks of nervousness and uncertainty in the company.

“The affected teams have not yet finished making final decisions about which features will be affected.

Once those decisions have been made (our goal is to complete them by mid-to-end April), we will communicate with the affected employees (or, where applicable in Europe, with the employee representative bodies),” says Jassy.

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Source: elparis

All business articles on 2023-03-20

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