The latest wave of job cuts are expected to take place mostly in Amazon Web Services, people experience and technology organisation, advertising, and Twitch units, and is a part of the firm’s annual planning process which is focused on streamlining costs and headcount
Amazon to execute another round of layoffs by cutting down its workforce by nearly 9,000. (Credit: Michael Rivera/Wikimedia Commons)
E-commerce major Amazon has announced plans to execute another round of layoffs by cutting down its workforce by nearly 9,000 in the next few weeks.
The job cuts are expected to take place mostly in Amazon Web Services (AWS), people experience and technology (PXT) organisation, advertising, and Twitch units.
According to the company’s CEO Andy Jassy, the second round of the job cuts has come as a part of its annual planning process which is focused on streamlining costs and headcount in light of the uncertain economy and future.
Jassy stated: “The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”
The Amazon CEO also added that limited hiring will take place in some of Amazon’s businesses in strategic areas where the company has prioritised allocating more resources.
Jassy said that once the decisions are taken, which are targeted to be complete by mid to late April 2023, the company will communicate with the affected employees or their representative bodies in certain countries.
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.
Amazon’s new round of job cuts comes after its January 2023 decision to lay off more than 18,000 employees in Amazon stores and its PXT organisation.
Last week, Facebook’s owner Meta also announced plans to execute a second round of layoffs by further reducing its workforce by about 10,000.