Amazon says it plans to lay off more than 18,000 employees as the global economic outlook continues to deteriorate.
Multiple teams will be affected, including the human resources department and Amazon stores, according to a memo from CEO Andy Jassy shared with employees.
“Companies that last for a long time go through different phases. They’re not in heavy person expansion mode every year,” he said.
Jassy had said in November that job cuts at the e-commerce giant would continue through early 2023. Several outlets reported in the fall that Amazon planned to cut about 10,000 employees.
Amazon and other tech companies have dramatically increased hiring over the past two years as the pandemic shifted consumer habits toward e-commerce.
Now, many of these seemingly untouchable tech companies are taking a beating and laying off thousands of workers as people revert to pre-pandemic habits and macroeconomic conditions deteriorate.
Jassy, in his memo, said Amazon executives recently met to discuss how to downsize the business and prioritize “what matters most to customers and the health of people.” long term of our businesses”.
“This year’s review has been more difficult given the uncertain economy and the fact that we have been hiring rapidly over the past few years,” he added.
The layoffs will help Amazon pursue long-term opportunities with a stronger cost structure, Jassy said. But he called the cuts a “difficult decision”, noting that he is “deeply aware that these role eliminations are difficult for people, and we do not take these decisions lightly and do not underestimate how they could affect the lives of those affected. ”
The company will start notifying affected personnel from January 18, he added.
Amazon’s business initially boomed during the pandemic as consumers relied on online shopping for just about everything.
This year, however, the company is facing a return to in-person shopping as well as runaway inflation that has sharply reduced consumer demand.
In October, Amazon disappointed Wall Street with a holiday season forecast that failed analysts’ expectations miserably. Shares of the company have fallen about 50% in the past year.
Like Jassy, a number of other tech founders and CEOs have since admitted they failed to accurately gauge pandemic demand.
Facebook’s parent company Meta recently announced 11,000 job cuts, the largest in the company’s history. Twitter also announced widespread job cuts after Elon Musk bought the company for $44 billion.
Salesforce announced this week that it will cut 10% of its staff.