As part of a workforce reduction as previously disclosed by Amazon.com Inc, no layoffs will stretch to more than 18,000 roles, as confirmed the Chief Executive Andy Jassy in a public staff note on Wednesday.
Basically, the e-commerce giant will communicate the layoff decisions starting January 18.
Layoffs Impacting Organization
Jassy said that the decision is expected to largely impact the company’s e-commerce and human-resource organization.
Notably, these layoffs amount to 6% of Amazon’s roughly 300,000-person corporate workforce.
It basically represents a swift turn for a retailer that recently doubled its base pay ceiling to compete more aggressively for talent.
The annual planning “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” Jassy said in the note.
As of date, Amazon has more than 1.5 million workers.
The workforce includes warehouse staff, making it ‘s second-largest private employer after Walmart Inc.
Slow Down Affecting Business
It appears that the e-commerce major has braced for likely slower growth as soaring inflation encouraged businesses.
Besides this, the consumers have cut back spending and its share price has halved in the past year.
While all this was happening, Amazon began letting staff go in November from its devices division.
According to the sources, at the time it was targeting 10,000 job cuts.
But considering the latest figures, its layoffs now surpass the 11,000 job cuts at Facebook-parent Meta Platform Inc as well as reductions at other tech-industry peers.
Not A Light Decision On Amazon’s Part
explaining the scenario, Jassey said the company’s leadership was “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly”.
Further adding, “We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support,”.
While talking about the affected people,he said that some of the layoffs would be in Europe.
The impacted workers would be informed starting on January 18.
While talking about the sudden announcement, he said that the announcement was being made because “one of our teammates leaked this information externally.”
Future explained, “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,”.
