Amazon to layoff over 18,000 employees citing economic uncertainty

Business Thursday 05/January/2023 09:12 AM
Amazon to layoff over 18,000 employees citing economic uncertainty

Washington:: Amazon on Thursday said it will lay off over 18,000 employees from its workforce citing economic uncertainty.

"Between the reductions we made in November and the ones we're sharing today, we plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations," CEO Andy Jassy said in a statement. "S-team and I are deeply aware that these role eliminations are difficult for people, and we don't take these decisions lightly or underestimate how much they might affect the lives of those who are impacted."

Jassy added Amazon is working to support those who are affected by providing packages that include a separation payment, transitional health insurance benefits, and external job placement support.

In November 2022 too, Amazon reduced staff size by approximately 10,000, especially in the Devices and Books businesses, and also announced a voluntary reduction offer for some employees in its People, Experience, and Technology (PXT) roles.

During the November layoff, the company indicated that there would be more role reductions in early 2023.

"This year's review has been more difficult given the uncertain economy and that we've hired rapidly over the last several years," the statement by CEO added, explaining the rationale for the downsizing of the human resources.

The company will communicate with impacted employees or (representative bodies for Europe) starting January 18.

"Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I'm also optimistic that we'll be inventive, resourceful, and scrappy in this time when we're not hiring expansively and eliminating some roles," Jassy further said in the statement.