Amazon says it will cut more than 18,000 jobs, more than originally planned

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Andy Jassy, ​​Head of Amazon Web Services.

CNBC

Amazon said Wednesday it would cut more than 18,000 jobs, a larger number than the retailer initially said it would cut last year.

The Wall Street Journal reported the cuts earlier, which Amazon said preceded its planned announcement.

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“We typically wait to communicate these outcomes until we can speak with the people directly affected,” CEO Andy Jassy wrote in a memo to employees released by the company on their blog. “However, since one of our players leaked this information to the outside world, we decided it was best to share this news earlier so you can hear the details directly from me.”

Tech companies are picking up in 2023 where they left off last year, preparing for an extended economic downturn. Sales force said on Wednesday that it would reduce headcount by 10%, affecting more than 7,000 workers. Amazon and Salesforce admitted they were hiring too quickly during the pandemic.

Amazon specifically admitted that it had added workers too quickly in warehouses as customers moved to online ordering. The company employed 1.54 million people at the end of the third quarter.

In November, Jassy said Amazon would cut jobs, including in its physical stores and in its appliance and book divisions. CNBC reported at the time that Amazon was looking to lay off about 10,000 of its employees. Now the number is higher.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I am also hopeful that we will be resourceful, resourceful and quick during this time when we are not hiring extensively and eliminating some positions. .”

Amazon plans to notify workers who will lose their jobs starting Jan. 18, Jassy wrote, noting that most of the cuts will come in the stores and People, Experience groups, and Technology (PXT).

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