Amazon said it will eliminate more than 18,000 jobs mostly from its stores and technology groups
America’s e-commerce giant, Amazon, has said it will cut more than 18,000 jobs as a result of uncertainties in the economy. The company’s CEO, Andy Jassy, confirmed this in a message on the company’s website.
Aside from the economic downturn, Amazon specifically acknowledged that it had added workers too quickly in warehouses as consumers shifted to online ordering. The company said the majority of role eliminations will be in its Stores and People, Experience, and Technology (PXT) groups.
This is coming as the biggest layoffs in the recent wave of downsizing in the global tech industry, which had seen Meta cut 11,000 of its workforce and Twitter slashed its staff by 3,700. Salesforce also this week announced it would cut 10% of its workforce, which will affect over 7,000 of its staff.
Leaked information: Acknowledging that the company had to make the decision public because the information was leaked by one of the company’s staff, Jassy said:
- We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted. However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me. We intend on communicating with impacted employees (or where applicable in Europe, with employee representative bodies) starting on January 18.”
- “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; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles,” Jassy added.
In November last year, Jassy said Amazon would eliminate roles, including at its physical stores and in its devices and books divisions. At the time, it was reported that Amazon was looking to lay off around 10,000 of its employees, but the figure is now higher.