Amazon layoffs to exceed 18,000, says president

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Amazon layoffs to exceed 18,000, says president

Layoffs at Amazon.com will rise to more than 18,000 as part of a previously announced workforce reduction, Chief Executive Andy Jassy said in a statement on Wednesday.

The layoffs, which will be communicated from Jan. 18, will have a major impact on the company’s e-commerce and human resources areas, he said.

The cuts represent 6% of Amazon’s corporate workforce, which totals about 300,000 people, and represent a turning point as the retailer recently doubled its base salary cap to compete more aggressively for talent.

Amazon has more than 1.5 million workers, including warehouse personnel, and is the second-largest private employer in the United States, behind Walmart.

Jassy said in the statement that annual planning has been “more difficult” due to economic uncertainty and the fact that the company has hired “quickly” in recent years.

Amazon began laying off employees in its device division in November. A source told Reuters at the time that the company planned about 10,000 cuts.

The tech industry laid off more than 150,000 workers in 2022, according to tracking website Layoffs.fyi.

Amazon in Brazil did not immediately respond to inquiries about the potential impact of the cuts on local employees.

The change of winds in Amazon was stark. From a business considered essential during the pandemic, through the delivery of goods, the company now sees lower than expected demand for its products.

Amazon’s layoffs surpass the 11,000 cuts announced last year by Meta Platforms, Facebook’s parent company.

Jassy’s statement came after the Wall Street Journal said Amazon would lay off more than 17,000 people. Jassy stated that Amazon chose to release the news before informing the affected team due to a leak.

Amazon has yet to file certain legal notices about mass layoffs and plans to pay severance payments.

Jassy said, “Amazon has weathered uncertain and difficult economies in the past and we will continue to do so.”

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