Amazon CEO Andy Jassy says Layoffs Will Continue Into Next Year

Amazon will continue to lay off employees in the coming year, CEO Andy Jassy wrote in a memo to workers on Thursday.

“I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time (and, we’ve had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic),” Jassy wrote. “It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted.”

The company this week began informing employees in some divisions, including devices and services, that they were being let go. It has also offered some employees the option to take a voluntary buyout as a means of trimming headcount in addition to the layoffs.

Amazon is aiming to lay off about 10,000 employees, though the total number of impacted workers remains fluid, a person familiar with the matter previously told CNBC. The cuts are being made as Amazon reckons with a worsening economy, which has slowed growth in some divisions and after its headcount ballooned during the pandemic.

Jassy said the layoffs will stretch into 2023 as the company is still in the midst of its annual operating planning process, and business leaders are still determining the need for further job cuts.

“Those decisions will be shared with impacted employees and organizations early in 2023,” Jassy wrote. “We haven’t concluded yet exactly how many other roles will be impacted (we know that there will be reductions in our Stores and PXT organizations), but each leader will communicate to their respective teams when we have the details nailed down.”

Amazon had already implemented a hiring freeze in its corporate workforce as it looks to slow headcount growth. The company is still hiring warehouse workers to staff up for the holiday rush.

Job cuts are hitting the tech sector hard after years of unbridled growth. Facebook parent Meta last week laid off 13% of its staff, while Twitter, Shopify, Salesforce and Stripe have also announced cuts.

Source: CNBC

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