Amazon plans to lay off 9 thousand of employees.
The media reports that these layoffs will be the last stage of the company’s strategy to reduce the workforce as part of efforts to adapt to new economic realities. The expected layoffs will primarily affect employees of the cloud computing, Twitch live broadcast, and advertising departments. This was stated by the company’s CEO Andy Jassi in an address to workers last Monday, March 20.
The upcoming layoffs are a continuation of previous actions to reduce the workforce. In January, the company laid off 18 thousand of employees.
Andy Jassi says that over the past few years, the enterprises that are part of the company’s ownership structure have been actively increasing the number of employees, which was an adequate solution taking into account the then state of affairs in the economy. But the current economic realities, which, according to the head of Amazon, are characterized by a lack of stability and unclear prospects for the future, require a more thoughtful approach to issues such as spending and staff numbers.
In November last year, the company announced its intention to lay off 9 thousand employees but then increased this number to 18 thousand. The reduction of the workforce announced in March once again increases the number of laid-off workers. Andy Jassi explained the lack of warning about the next stage of layoffs by the fact that not all departments provided reports on their activities in the fall, which is why the company decided not to rush into making decisions about the number of staff.
The head of Amazon says that currently, the firm’s priority goal is to reduce the cost of customer service in the operating network.
Workforce reductions are currently a common solution in the business sector. Last week, the layoffs were reported by Meta. The technology giant intends to lay off 10 thousand employees. In November, this company cut 11 thousand of jobs. Meta will also suspend hiring for 5,000 vacancies.
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