Amazon CEO Andy Jassy speaks during the GeekWire Summit successful Seattle connected Oct. 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon volition proceed to laic disconnected employees successful the coming year, CEO Andy Jassy wrote successful a memo to workers connected Thursday.
"I've been successful this relation present for astir a twelvemonth and a half, and without a doubt, this is the astir hard determination we've made during that clip (and, we've had to marque immoderate precise pugnacious calls implicit the past mates of years, peculiarly during the bosom of the pandemic)," Jassy wrote. "It's not mislaid connected maine oregon immoderate of the leaders who marque these decisions that these aren't conscionable roles we're eliminating, but rather, radical with emotions, ambitions, and responsibilities whose lives volition beryllium impacted."
The institution this week began informing employees successful immoderate divisions, including devices and services, that they were being fto go. It has besides offered immoderate employees the enactment to instrumentality a voluntary buyout arsenic a means of trimming headcount successful summation to the layoffs.
Amazon is aiming to laic disconnected astir 10,000 employees, though the full fig of impacted workers remains fluid, a idiosyncratic acquainted with the substance antecedently told CNBC. The cuts are being made arsenic Amazon reckons with a worsening economy, slowing maturation successful immoderate divisions and aft its headcount ballooned during the pandemic.
Jassy said the layoffs volition agelong into 2023 arsenic the institution is inactive successful the midst of its yearly operating readying process, and concern leaders are inactive determining the request for further occupation cuts.
"Those decisions volition beryllium shared with impacted employees and organizations aboriginal successful 2023," Jassy wrote. "We haven't concluded yet precisely however galore different roles volition beryllium impacted (we cognize that determination volition beryllium reductions successful our Stores and PXT organizations), but each person volition pass to their respective teams erstwhile we person the details nailed down."
Amazon had already implemented a hiring frost successful its firm workforce arsenic it looks to dilatory headcount growth. The institution is inactive hiring warehouse workers to unit up for the vacation rush.
Job cuts are hitting the tech assemblage hard aft years of unbridled growth. Facebook parent Meta last week laid off 13% of its staff, portion Twitter, Shopify, Salesforce and Stripe person besides announced cuts.
Here's the afloat memo from Jassy:
Two weeks ago, Beth shared that S-team and I decided to intermission caller incremental hires successful our firm workforce. Today, I privation to stock immoderate accusation astir relation eliminations. We are successful the mediate of our yearly operating readying reappraisal wherever we look astatine each of our businesses and marque decisions astir what we judge we should change. Leaders crossed the institution are moving with their teams and looking astatine their workforce levels, investments they privation to marque successful the future, and prioritizing what matters astir to customers and the semipermanent wellness of our businesses. This year's reappraisal is much hard owed to the information that the system remains successful a challenging spot and we've hired rapidly the past respective years.
Yesterday, we communicated the hard determination to destruct a fig of positions crossed our Devices and Books businesses, and besides announced a voluntary simplification connection for immoderate employees successful our People, Experience, and Technology (PXT) organization. Our yearly readying process extends into the caller year, which means determination volition beryllium much relation reductions arsenic leaders proceed to marque adjustments. Those decisions volition beryllium shared with impacted employees and organizations aboriginal successful 2023. We haven't concluded yet precisely however galore different roles volition beryllium impacted (we cognize that determination volition beryllium reductions successful our Stores and PXT organizations), but each person volition pass to their respective teams erstwhile we person the details nailed down. And, arsenic has been the lawsuit this week, we volition prioritize communicating straight with impacted employees earlier making wide nationalist oregon interior announcements.
I've been successful this relation present for astir a twelvemonth and a half, and without a doubt, this is the astir hard determination we've made during that clip (and, we've had to marque immoderate precise pugnacious calls implicit the past mates of years, peculiarly during the bosom of the pandemic). It's not mislaid connected maine oregon immoderate of the leaders who marque these decisions that these aren't conscionable roles we're eliminating, but rather, radical with emotions, ambitions, and responsibilities whose lives volition beryllium impacted. We are moving to enactment those who are affected and trying to assistance them find caller roles connected teams that person a need; and successful cases wherever that's not possible, we are offering packages that see a separation payment, transitional wellness security benefits, and outer occupation placement support.
Amazon has weathered uncertainty and hard economies successful the past, and we volition proceed to bash so. We person large opportunities ahead, some successful our much established businesses similar Stores, Advertising, and AWS, but besides successful our newer initiatives that we've been moving connected for a fig of years and person condemnation successful pursuing (e.g. Prime Video, Alexa, Kuiper, Zoox, and Healthcare). The cardinal volition beryllium to bash what Amazon does champion – obsess implicit customers and invent relentlessly connected their behalf – and if we bash that, we should each beryllium precise optimistic astir Amazon's future. I cognize I am.
I privation to convey each of you for your continuing contributions during this challenging clip and arsenic we cogwheel up to present for customers during the engaged buying season.
Thanks,
Andy
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