Amazon boss Andy Jassy says the layoffs will continue into next year

Amazon had already introduced a hiring freeze for its corporate workforce in a bid to slow staff growth. The company is still hiring warehouse workers to prepare for the holiday rush.

The job cuts are hitting the tech sector hard after years of unbridled growth. Facebook parent Meta laid off 13% of its employees last week, while Twitter, Shopify, Salesforce, and Stripe also announced cuts.

Two weeks ago, Beth shared that the S-Team and I have decided to suspend the hiring of new hires across our corporate workforce. Today I want to share some information about Role Eliminations. We’re in the midst of our annual operations plan review, where we look at each of our businesses and make decisions about what we think we should change. Leaders across the business work with their teams to review their workforce, investments they want to make for the future, and prioritize what’s most important to customers and the long-term health of our businesses. This year’s review is more difficult due to the fact that the economy continues to be in a challenging state and we have been hiring rapidly over the last few years.

Yesterday, we announced the difficult decision to eliminate a number of positions in our Devices and Books businesses, and also announced a voluntary headcount reduction offer for some employees in our People, Experience, and Technology (PXT) organization. Our annual planning process extends into the new year, which means there will be further role cuts as leaders continue to make adjustments. These decisions will be shared with affected employees and organizations in early 2023. We haven’t decided exactly how many other roles will be impacted (we know there will be cuts across our branches and PXT organizations), but each leader will be in touch with their respective teams when we make the have details nailed down. And like this week, we will prioritize direct communication with impacted employees before making broad public or internal announcements.

I’ve been in this role for about a year and a half now, and without a doubt, this is the toughest decision we’ve made in that time (and we’ve had to make some very tough decisions in the past few years, especially during the heart of the pandemic). It hasn’t escaped me, or the leaders making these decisions, that these aren’t just roles we’re eliminating, they’re people with emotions, ambitions, and responsibilities whose lives are being impacted. We work to support those affected and help them find new roles in teams that need them; And where that is not possible, we offer packages with separation allowance, health insurance transitional benefits and support with external job placement.

Amazon has weathered uncertainties and difficult economic times in the past, and we will continue to do so. We have great opportunities ahead of us, both in our more established businesses such as Stores, Advertising and AWS, and in our newer initiatives that we have been working on for a number of years and which we are passionate about (e.g. Prime Video, Alexa, Kuiper , Zoox and Healthcare). The key will be doing what Amazon does best — taking care of customers and relentlessly inventing on their behalf — and when we do that, we should all be very optimistic about Amazon’s future. i know i am

I would like to thank each of you for your continued contributions during this challenging time and as we prepare to deliver to customers during the busy shopping season.

Many Thanks,
andy

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