Amazon has recently announced that it will be laying off 9,000 more employees in the coming weeks, mostly in AWS, PXT, Advertising, and Twitch.
The company’s CEO, Andy Jassy, stated in a message to impacted employees that the layoffs are necessary to save costs and streamline the company’s headcount.
This move comes after Amazon eliminated 18,000 jobs in January of this year, bringing the total number of job cuts to 27,000.
According to Jassy, Amazon overhired employees in the past few years, and now, it must make tough decisions to use its resources more efficiently amidst economic uncertainty. “Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” he said.
Jassy further explained that Amazon did not announce both layoffs at once because not all teams had completed their analyses in the late fall. As the company’s internal businesses evaluated what customers cared about most, they made re-prioritization decisions that sometimes led to role reductions, moving people from one initiative to another, and creating new openings where the existing team members did not match the necessary skills.
The CEO stated that the company aims to complete the latest layoff process by mid to late April and will provide support to those employees who have been laid off. The packages will include a separation payment, transitional health insurance benefits, and external job placement support.
Despite the layoffs, Amazon remains committed to providing exceptional service to its customers and creating job opportunities in other areas. This move, while difficult, is necessary for the long-term success of the company.
