Amazon to cut more than 18 000 jobs, says chief executive Andy Jassy

Read More

Amazon announced on Wednesday it will cut more than 18 000 jobs from its workforce, citing “the uncertain economy” and the fact that the online retail giant had “hired rapidly” during the Covid-19 pandemic.

“Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18 000 roles,” said chief executive Andy Jassy in a statement to his staff.

The company had announced 10 000 layoffs in November.

Jassy said the company’s leadership was “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly”. 

“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.” 

Some of the layoffs would be in Europe, Jassy said, adding that the affected workers would be informed on 18 January. 

He said the sudden announcement was being made because the information had been leaked. 

“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” Jassy said, adding that “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so.” 

The retailer had hired with a vengeance during the pandemic to meet an explosion in demand for deliveries, doubling its global staff between the beginning of 2020 and the beginning of 2022. 

The group had 1.54 million employees worldwide at the end of September, not including seasonal workers recruited during periods of increased activity, particularly during the holiday season.

Amazon’s job-slashing plan is the largest among recent workforce reductions that have hit the tech sector in the United States. 

It is also the largest in the Seattle-based company’s history. 

Amazon saw its net profit drop 9% year on year in the third quarter. And for the last quarter, Amazon anticipated in November anaemic growth by its standards, between 2% and 8% over one year, and an operating profit of between $0 and $4 billion, against $3.billion for the same period of 2021. 

The group is to announce its annual results on February 1. 

In the tech sector, major platforms with an advertising-based business model are facing budget cuts from advertisers, who are reducing expenses in the face of inflation and rising interest rates. 

Meta, the parent company of Facebook, announced in November the loss of 11 000 jobs, or about 13% of its workforce. At the end of August, Snapchat let go about 20% of its employees, about 1 200 people.

Twitter was bought in October by billionaire Elon Musk, who promptly fired about half of the social media platform’s 7 500 employees. 

Also, IT group Salesforce, which specialises in management solutions and in cloud technology, announced on Wednesday that it was laying off about 10% of its employees, or just under 8 000 people. — AFP