Amazon is to cut 9000 jobs in another round of layoffs which was announced by Chief executive officer Andy Jassy in a memo to workers on 20th March 2023. More than two months ago, Amazon revealed that its staff-cutting plans had been broadened to impact more than 18,000 employees.
The memo stated, “As we’ve just concluded the second phase of our operating plan (“OP2”) this past week, I’m writing to share that we intend to eliminate about 9,000 more positions in the next few weeks—mostly in AWS, PXT, Advertising, and Twitch.” This indicates two things (1) layoffs will take place in the next one or two months and (2) most of these layoffs will take place in Amazon Web Services, PXT, Advertising and Twitch streaming services.
Andy Jassy is of the opinion that leaders across company will decide upon investments to be made ahead. Also prioritizing long term plans on health of company and what is more important from customer point of view. The company has chosen to streamline costs and number of employees taking into consideration the uncertainty of the economy.
But as we have seen that in past month that company had eliminated around 18000 positions. There might be a question that why the company did not announce this recent decision in one go. “The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible.”
The company is quite certain that these decisions will be completed by mid to late April. Also, the company will “provide packages that include a separation payment, transitional health insurance benefits, and external job placement support.”
This comes just days after Meta announced its plan to layoff 10000 employees. The idea behind the announcement were mentioned to make Meta a better technology company and to improve their financial performance to execute the long-term vision of company. This seems quite relatable with reasons given by Amazon in its Memo.
Also, Andy Jassy wrote a thankyou note for all employees being impacted saying, “To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company. It’s never easy to say goodbye to our teammates, and you will be missed.” He further mentioned that the company looks forward to partner with the employees continuing with the company to make their life easier for their customers.
Source: Amazon Blog