The planned layoffs at Amazon.com Inc's will now total more than 18,000. This will be a part of the previously announced plan of the e-commerce giant to to reduce its workforce. This announcement was made by the company's Chief Executive Andy Jassy in a public staff note.
The layoff decisions, which Amazon will announce on January 18, will primarily affect the company's e-commerce and human-resources departments, he said.
The layoffs represent 6% of Amazon's roughly 300,000-person corporate workforce and mark a swift turn for a retailer that recently doubled its base pay ceiling in order to compete more aggressively for talent.
Amazon employs over 1.5 million people, including warehouse workers, making it the country's second-largest private employer after Walmart Inc.
In after-hours trading, its stock rose 2%.
In the note, Jassy stated that annual planning "has been more difficult given the uncertain economy and the rapid hiring over the last several years."
Amazon has braced for slower growth as rising inflation has encouraged businesses and consumers to cut back on spending, and its share price has more than halved in the last year.
The company began laying off employees from its devices division in November, with a source telling Reuters at the time that it was aiming for 10,000 layoffs.
According to the tracking site Layoffs.fyi, the tech industry will have shed more than 150,000 workers by 2022, a figure that is expected to rise. Salesforce Inc said on Wednesday that it planned to lay off about 10% of its workforce, which numbered nearly 8,000 as of Oct. 31.
Amazon's fortunes have taken a sharp turn for the worse. It evolved from a company that was deemed necessary during the pandemic for delivering goods to locked-down homes to one that overbuilt for demand. Its layoffs now exceed the 11,000 announced by Facebook-parent Meta Platforms Inc. last year.
Jassy's note came after the Wall Street Journal reported that the layoffs would total more than 17,000 people. He claimed that due to a leak, Amazon chose to reveal the news before informing affected employees.
Amazon must still file certain legal notices regarding mass layoffs, and it intends to pay severance.
"Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so," Jassy said.
(Source:www.economictimes.com)
The layoff decisions, which Amazon will announce on January 18, will primarily affect the company's e-commerce and human-resources departments, he said.
The layoffs represent 6% of Amazon's roughly 300,000-person corporate workforce and mark a swift turn for a retailer that recently doubled its base pay ceiling in order to compete more aggressively for talent.
Amazon employs over 1.5 million people, including warehouse workers, making it the country's second-largest private employer after Walmart Inc.
In after-hours trading, its stock rose 2%.
In the note, Jassy stated that annual planning "has been more difficult given the uncertain economy and the rapid hiring over the last several years."
Amazon has braced for slower growth as rising inflation has encouraged businesses and consumers to cut back on spending, and its share price has more than halved in the last year.
The company began laying off employees from its devices division in November, with a source telling Reuters at the time that it was aiming for 10,000 layoffs.
According to the tracking site Layoffs.fyi, the tech industry will have shed more than 150,000 workers by 2022, a figure that is expected to rise. Salesforce Inc said on Wednesday that it planned to lay off about 10% of its workforce, which numbered nearly 8,000 as of Oct. 31.
Amazon's fortunes have taken a sharp turn for the worse. It evolved from a company that was deemed necessary during the pandemic for delivering goods to locked-down homes to one that overbuilt for demand. Its layoffs now exceed the 11,000 announced by Facebook-parent Meta Platforms Inc. last year.
Jassy's note came after the Wall Street Journal reported that the layoffs would total more than 17,000 people. He claimed that due to a leak, Amazon chose to reveal the news before informing affected employees.
Amazon must still file certain legal notices regarding mass layoffs, and it intends to pay severance.
"Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so," Jassy said.
(Source:www.economictimes.com)
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