Amazon will be laying off 9,000 additional employees, CEO Andy Jassy announced in a memo to employees on Monday.
These cuts come on top of previous layoffs which began in November and continued into January. More than 18,000 employees were affected by the round .
Jassy stated that Amazon decided to lay off additional employees to reduce costs. It also considered the uncertain economy and “uncertainty that will exist in the near future”. Just recently, the company completed its second phase of its annual budgeting process (referred to internally as “OP2”).
Jassy stated that the overriding principle of our annual planning was to be leaner, while still investing robustly in long-term customer experiences that can improve customers’ lives and Amazon overall.
Jassy stated in the memo that Amazon’s latest round will have a major impact on its cloud computing, advertising, and Twitch live streaming businesses.
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After its hiring spree during Covid pandemic, Amazon is reducing its workforce. Amazon’s global workforce has risen to more than 1.5 million by 2021 from 798,000. In the fourth quarter 2019.
Jassy is also going through a comprehensive overview of company expenses, as the company faces an economic downturn and slower growth in its core retail business. Amazon stopped hiring, ended some experimental projects, and slowed its warehouse expansion.
Although the company is working to be more efficient this year, Jassy stated that he still believes in the company’s “largest business”, retail and Amazon Web Services. He also said that he continues to invest in other new divisions.
