Layoffs will start later this month, Andy Jassy has said in a memo to employees
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US e-commerce giant Amazon will fire over 18,000 employees in the coming weeks, CEO Andy Jassy announced in a message to employees published on Amazon’s website on Thursday.
According to Jassy, the “difficult” decision was made as part of planning for 2023 amid an “uncertain economy,” and aims to “help pursue our long-term opportunities with a stronger cost structure.”
“We plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations,” the message read. Jassy said the company will start notifying impacted employees of their layoffs on January 18. The firings will largely impact the company’s e-commerce and human resources divisions, he added.
Amazon began its layoffs in November, with reports at the time claiming that the company planned to let around 10,000 employees go. However, as Jassy explained, after further assessment of the economic conditions, it became apparent that more layoffs will be needed to keep the company afloat amid a drop in consumer demand and a shift back to in-person shopping among the public.
Amazon’s workforce nearly doubled over the past two years due to soaring demand for online services amid the Covid-19 pandemic. However, the company’s revenue growth slowed once the pandemic restrictions were lifted. In October, the online retailer reported flat earnings, falling short of revenue expectations.