Amazon will cut jobs in the United States, Canada and Costa Rica, as part of its plan to lay off 18,000 employees, e-commerce company Amazon said in a note to employees seen by Reuters.
The layoffs are the latest in the US tech sector, as companies cut their bloated workforce and slashed costs to reverse pandemic-era excesses and prepare for a downturn in the global economy.
The company is terminating 2,300 employees in Seattle and Bellevue, according to the Worker Amendment and Retraining Notice (WARN) website update. U.S. labor law requires companies planning mass layoffs to notify employees 60 days in advance of closing.
Amazon CEO Andy Jassy said earlier this month that the cuts, about 6 percent of the company’s roughly 300,000 employees, will mostly affect its e-commerce and human resources departments.
According to a report earlier this month, tech companies laid off more than 150,000 workers in 2022, contributing to a 649 percent increase in job cuts from 2021. Analysts say the mass layoffs at Amazon indicate that the wave of The job cuts that have gripped the tech sector could extend into 2023.
Microsoft said earlier that it would cut about 10,000 jobs and charge $1.2 billion in fees. In a note sent to employees and posted online, CEO Satya Nadella outlined the economic conditions that force “difficult choices” like this, but stated that Microsoft will continue to invest in “Strategic Areas” for their future, and employees affected by the reduction drive will be notified immediately, however, the process is only expected to be completed by the third quarter of 2023.