According to a personnel reduction that Amazon.com Inc. (AMZN.O) previously reported, layoffs will now total more than 18,000 positions, Amazon CEO Andy Jassy announced in a public staff message on Wednesday.
He claimed that the e-commerce and human resources departments of the company will be significantly impacted by the layoff choices, which Amazon will announce starting on January 18.
The layoffs affect 6% of Amazon’s approximately 300,000-person corporate workforce and mark a sharp flip for a company that recently quadrupled its base salary threshold in an effort to attract talent more aggressively.
Amazon is America’s second-largest private employer after Walmart Inc. with more than 1.5 million employees, including warehouse labor (WMT.N).
In after-hours trading, the shares increased by 2%.
According to Jassy’s email, annual planning “has been increasingly challenging given the unpredictable economic climate and the substantial growth in our workforce over the last few years.”
Since its share price has decreased by half over the past year due to rising inflation, Amazon has prepared for expected slower growth.
A source told Reuters at the time that the corporation started letting employees go from its devices segment in November with an objective of making about 10,000 reductions.
According to the tracking website Layoffs. FYI, the tech sector laid off more than 150,000 workers in 2022. On Wednesday, Salesforce Inc. (CRM.N) announced plans to lay off roughly 10% of its workforce, which numbers close to 8,000 as of October 31.
Amazon’s fortunes have taken a sharp turn for the worse. It transformed from a corporation that was overbuilt for demand during the pandemic to one that was deemed crucial for delivering commodities to locked-down households.
Now, its job losses exceed the 11,000 reductions made public by Meta Platforms Inc., a subsidiary of Facebook (META).
Jassy’s reply came after a Wall Street Journal story stating that the employment loss will total more than 17,000 positions.
According to him, there was a leak, therefore Amazon decided to break the news before alerting the impacted employees.
Amazon still needs to submit specific legal notices regarding mass layoffs, and it intends to provide severance.
Amazon has survived unstable and challenging economies in the past, and we will continue to do so, according to Jassy.