Amazon will shed some 9,000 jobs just weeks after it laid off around 18,000 employees, the Seattle-based e-commerce giant told its employees Monday.
Andy Jassy, the CEO of the $1 trillion firm, circulated a memo announcing the newest layoffs will impact 3% of its 282,000-strong corporate workforce.
“This was a difficult decision, but one which we predict is best for the corporate long run,” Jassy wrote within the memo.
Jassy told staffers that almost all of the cuts will affect positions in the corporate’s cloud computing division Amazon Web Services, its People experience and Technology unit (PXT), its promoting department, and its Twitch live video streaming division.
Amazon joins other tech giants including Google, Meta, Twitter, and Microsoft which have laid off tens of 1000’s of employees in recent months resulting from falling revenue and macroeconomic headwinds spurred by soaring inflation and high rates of interest.
Jassy said the corporate had added substantial amount of staff previously few years, however the uncertain economy has forced it to decide on cost and headcount cuts.
“Given the uncertain economy during which we reside, and the uncertainty that exists within the near future, we’ve got chosen to be more streamlined in our costs and headcount,” Jassy said.
The culling comes just weeks after the corporate announced it was pausing construction on its much-touted second headquarters in Virginia.
Shares of Amazon fell by greater than 1.5% on Monday. Within the last yr, Amazon’s stock has lost 40% of its value.
Jassy said the layoffs were designed with the intention of creating the corporate “leaner while doing so in a way that permits us to still invest robustly in the important thing long-term customer experiences that we consider can meaningfully improve customers’ lives and Amazon as a complete.”
The Amazon chief said the firm “evaluated what customers most care about” and in consequence “made re-prioritization decisions that sometimes led to role reductions…”
“Some may ask why we didn’t announce these role reductions with those we announced a pair months ago,” Jassy wrote.
“The short answer is that not the entire teams were done with their analyses within the late fall…”
Jassy said that management teams at Amazon did their “appropriate diligence” in determining which roles to chop.
“To those ultimately impacted by these reductions, I would like to thanks for the work you could have done on behalf of consumers and the corporate,” he wrote.
“It’s never easy to say goodbye to our teammates, and also you can be missed.”
This past fall, Amazon announced it was cutting 6% of its 300,000-strong corporate workforce — the most important in its nearly 30-year-history.
In its most up-to-date earnings report, the corporate said its net income decreased by some $300 million within the fourth quarter of last yr.
Overall, Amazon reported a net lack of $2.7 billion in 2022. The corporate was weighed down by its struggling Amazon Go and Amazon Fresh grocery stores.
