NEWS

Amazon to cut a further 9,000 roles

Published on: 21st March 2023

Amazon CEO Andy Jassy has updated staff on the company’s operating plan and outlined additional role eliminations.

Amazon is to cut around another 9,000 jobs across its global business, chief executive officer Andy Jassy has told workers in a message shared with Amazon employees on Monday.

The statement began: “As we’ve just concluded the second phase of our operating plan (“OP2”) this past week, I’m writing to share that we intend to eliminate about 9,000 more positions in the next few weeks—mostly in AWS, PXT, Advertising and Twitch. This was a difficult decision, but one that we think is best for the company long term.”

The CEO went on to share some additional context, explaining that leaders across the company had worked with their teams to decide what investments they want to make for the future, prioritizing what matters most to customers and the long-term health of the businesses.

“For several years leading up to this one, most of our businesses added a significant amount of headcount,” Andy continued. “However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

He stressed that the overriding tenet of Amazon’s annual planning was “to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”

Amazon subsequently made “re-prioritization decisions” that led to role reductions, moving people from one initiative to another, and  new openings where the company doesn’t have the right skills match from existing team members.

In January this year, the company announced that it would be shedding 18,000 positions. Now, a further 9,000 roles are set to be lost. Andy added that limited hiring may still take place in some Amazon businesses, in areas that have been identified as benefiting from more resources.

Amazon expects final decisions to have been made by mid to late April, when the company promises to communicate with the impacted employees, or their representative bodies. “We will, of course, support those we have to let go, and will provide packages that include a separation payment, transitional health insurance benefits, and external job placement support,” said Andy.

He concluded: “I remain very optimistic about the future and the myriad of opportunities we have, both in our largest businesses, our stores and AWS, and our newer customer experiences and businesses in which we’re investing. To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company. It’s never easy to say goodbye to our teammates, and you will be missed.”

The full statement can be read here.

 

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