April 22, 2024

Amazon plans to cut 18,000 corporate and technology jobs as it dramatically expands its cost-cutting program, Chief Executive Andy Jassy said in a statement. Information for Employees Wednesday.

The company previously planned to lay off about 10,000 workers late last year and early this year, The New York Times reported in mid-November. The first layoffs were concentrated in the company’s equipment and books divisions. Human resources employees also received buyout offers to resign.

Mr. Jassy said the new wave of layoffs, which will begin on Jan. 18, will focus on human resources and the large divisions Amazon calls stores. That includes the team behind Amazon’s main online site, its vast field operations and warehouses, brick-and-mortar stores and other consumer teams.

The layoffs totaled 18,000, or about 6% of Amazon’s workforce. Late last year, managers from various groups said they had been asked to prepare for possible job cuts, which staff had been preparing for.

The layoffs do not include hourly warehouse workers. Amazon typically reduces those jobs through high attrition rates.

“These changes will help us pursue long-term opportunities with a stronger cost structure,” Mr Jassy wrote. “However, I am also optimistic that we will be creative, resourceful and scrappy when we are not hiring and laying off massive numbers.”

The company more than doubled its workforce during the pandemic as customers flocked to online services. It had about 1.5 million employees as of the end of September.

However, Amazon’s growth has slowed to its lowest level in 20 years, and Mr Jassy has been alarmed by the company’s overreach. Amazon recently warned investors that growth could slow to its lowest level since 2001.

Mr Jassy said the extended layoffs were the result of Amazon’s annual business review, which had been made more difficult this year “due to the economic uncertainty and the rapidity with which we have hired over the past few years”.

wall street journal Report Earlier Wednesday, Amazon expanded its layoffs.

Amazon is one of many tech companies to have recently announced major layoffs. Salesforce, a large business software company, said Wednesday it plans to lay off 10% of its workforce, or about 8,000 employees, amid concerns about the economy. Other companies, including Meta and Twitter, have made large layoffs in recent months.

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