More than 18,000 roles will be “eliminated” at Amazon, expanding a previously announced round of layoffs that was supposed to affect 10,000 employees.
Even while the announcement only affects 1.2% of Amazon’s 1.5 million employees worldwide, it is significant in terms of the number of individuals it will affect. The majority of the positions affected by the most recent reductions will be in the People, Experience, and Technology (PXT) and Amazon Stores businesses, according to a memo sent to staff early this morning by CEO Andy Jassy.
This is in addition to the positions impacted in the Devices and Books businesses during the company’s previous announcement in November.
Amazon eliminates almost 18,000 jobs, while Salesforce will reduce its workforce by 10% by 2023. (CNBCTV18)
Amazon fired 18000 employees today to cut costs when they could instead stop delivering my tea in a box that could fit a baby elephant pic.twitter.com/S93YSlrOYu
— Corporate Chat India (@anonCorpChatInd) January 5, 2023
The revelation, which continues a trend that saw other businesses reduce their workforces throughout 2022 to combat economic challenges, comes just one day after Salesforce revealed it was laying off almost 10% of its headcount, affecting more than 7,000 workers. According to data from the layoff tracking website Layoffs. FYI, tech corporations may eliminate more than 150,000 employees by 2022.
Amazon stated that it has not yet notified customers who may be impacted, but it aims to do so starting on January 18. However, today’s statement appears to have been made earlier than Amazon had anticipated after a Wall Street Journal report obtained early facts via a leak.
In general, Jassy noted, “we hold off on communicating about these results until we can interact with the people who are directly impacted.” However, we believed it was better to disclose this news sooner so you could hear the details straight from me because one of our teammates externally released this information.
This also implies that, despite Jassy’s claim that Amazon will offer a “separation payment, transitional health insurance coverage, and external job placement support,” Amazon has not yet disclosed the specific details of its severance packages.