Amazon has disclosed the termination of 9,000 additional workers. The affected employees have received a note from the company's CEO, Andy Jassy, who said that Amazon is going through a challenging moment and would need to take this action to save expenses. The e-commerce behemoth has fired staff before; as many as 18,000 people were let go in January of this year. In essence, this implies that Amazon has sacked 27,000 workers altogether.
In the next weeks, we plan to cut roughly 9,000 additional jobs, largely in Twitch, PXT, AWS, and advertising. This was a challenging choice, but we believe it's the right one for the business in the long run," Jassy wrote in the email to the staff.
But why is Amazon laying off thousands of workers once more? The CEO of the firm indicated that because of the economic crisis, Amazon would have to fire employees in order to cut expenses and use resources more prudently. This is because the company employed too many people in the previous few years. In addition, he said that the action would benefit the business in the long term and allow it to use the money saved for greater purposes.
We have decided to be more lean in our costs and headcount because of the uncertain economy in which we currently live and the uncertainty that will prevail in the near future, he added. Jassy went on to say that the second wave of layoffs is currently taking place since not all teams had finished their assessments in the late autumn, which is why the corporation didn't disclose both rounds at once.
"As our internal businesses assessed what our customers care about most, they made re-prioritization decisions that occasionally led to role reductions, occasionally led to people being moved from one initiative to another, and occasionally led to new openings where we don't have the right skills match from our existing team members," he continued. Due to this, Amazon slashed 18,000 employees in January, and this month, after finishing the second phase of planning, the corporation has cut 9,000 more positions.
According to the CEO, the organisation hopes to wrap up the most recent round of layoffs by mid- to late-April. Additionally, he reaffirmed that Amazon will assist the fired workers. Offering packages that include a separation payout, temporary health insurance coverage, and assistance in finding a position outside of the company is promising.