The job cuts are expected to take place mostly in Amazon stores and PXT organisation and the company is expected to communicate regarding the layoffs to its affected employees or the employee representative organisations beginning on 18 January 2023
Amazon to lay off more than 18,000 employees. (Credit: Tedder/Wikimedia Commons)
Amazon has confirmed its decision to lay off more than 18,000 employees as the company aims to cut costs in light of the uncertain economy.
The job cuts are expected to take place mostly in Amazon stores and people experience and technology (PXT) organisation.
The mass job cuts were confirmed through a message from the American e-commerce major’s CEO Andy Jassy to employees.
Jassy stated: “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so.
“These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.”
Amazon is expected to communicate regarding the layoffs to its affected employees or the employee representative organisations beginning on 18 January 2023.
The e-commerce major is planning to assist those impacted and offer them packages, which include a separation payment, transitional health insurance benefits, and support for external job placements.
The company started to lay off its employees in November 2022.
As reported in November 2022, the initial job cuts were concentrated on the company’s devices organisation which includes the Alexa voice assistant gadgets, and home security cameras, in addition to the human resources and retail divisions.
Jassy said that the 18,000 roles planned to be eliminated are between the reductions made in November and the ones shared now.
The layoffs are said to be the biggest for the e-commerce major in its history.
In November 2022, Facebook’s owner Meta also announced its decision to lay off nearly 13% of its workforce, which impacted more than 11,000 employees.