Amazon to cut more than 18000 jobs to reduce costs
According to the CEO of the tech behemoth, Amazon, it plans to cut more than 18,000 jobs in order to reduce costs.
Amazon to cut more than 18000 jobs to reduce costs. The CEO continued by saying that the news had been made earlier “because one of our teammates externally released this information.”
The corporation employs about 300,000 people corporately, thus the job cuts represent about 6% of that workforce.
As consumers cut back on spending due to the cost of living crisis, Amazon is the most recent major technology company to announce significant layoffs.
“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,” Amazon’s chief executive Andy Jassy said in a message to staff.
The action follows the IT juggernaut’s announcement last year that it will reduce its personnel without providing a specific number of job cuts.
Where relevant in Europe, Mr. Jassy said the company will speak with organisations that represent employees, although he did not say where the impacted employees were based.
Additionally, he stated that the People, Experience, and Technology team and the Amazon Stores operations would see the “majority of role eliminations.”
Amazon announced in November that it would begin a round of layoffs as it focused on cutting costs, but it did not specify how many employees it would eliminate.
At the time, the corporation was expected to eliminate 10,000 jobs, according to US media.
The company warned it had overhired during the pandemic and had previously implemented a hiring freeze and stopped some of its warehouse expansions.
Additionally, it has taken steps to close off some areas of its operations by shelving plans for things like a personal delivery robot.
Mr Jassy said in the note that reviewing Amazon’s business “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.”
“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” he added.
