Amazon’s ongoing layoffs will affect about 18,000 workers, according to a memo from CEO Andy Jassy, which states that the “majority” of roles to be eliminated will be in Amazon Stores and People, Experience and Technology organizations.
That’s much more than was previously rumored and The New York Times reported that the company was aiming to cut its workforce by about 10,000 in September 2022. The company said it had about 1.5 million employees in total.
Amazon will split 18,000 people between the cuts announced in November and those announced today, according to theverge report.
The Wall Street Journal originally reported the expanded layoffs, saying they would affect “more than 17,000 workers,” and Jassy’s email notes that the company “will typically wait to communicate about these findings until we can speak with the people directly affected.” But it was She shares the news because “one of our teammates leaked this information externally, and also says that affected workers will start finding out on January 18th.”
And over the past few months, Amazon has admitted that it has been consolidating “some teams and software” in its hardware and services division, senior vice president Dave Limp said in a November email, though the company hasn’t officially confirmed the original figure.
CEO Andy Jassy told workers there will be “more role cuts as leaders continue to make adjustments” in 2023, but so far the company has been very vague about how many jobs will be affected.
In October, Amazon announced that it had returned to double-digit sales growth, thanks to the “biggest Prime Day event ever” in July, and promised investors that it was making “steady progress” toward cutting costs.
On January 3, it reported to the Securities and Exchange Commission that it had secured an $8 billion loan to be used for “general corporate purposes.”
An unnamed company spokesperson told TechCrunch that the company uses “various financing options to support capital expenditures, debt repayments, acquisitions and working capital needs” as it navigates an “uncertain macroeconomic environment.”
The company says it is “working to support those affected and offers packages that include severance payments, transitional health insurance benefits and overseas employment support.”
That makes Amazon’s cut one of the tech giant’s largest to date, and in the past few months, Meta has announced it will lay off about 11,000 employees, while companies like Intel have announced that they plan to make significant cuts throughout the year.
On Wednesday, Salesforce said it would cut about 10% of its workforce, which translates to about 8,000 employees, while Vimeo said it would lay off 11% of its employees.