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News > U.S.

Amazon to Lay Off Over 18,000 People

  • An Amazon fulfillment center in Staten Island, U.S., 2020.

    An Amazon fulfillment center in Staten Island, U.S., 2020. | Photo: Twitter/ @KAMCNews

Published 5 January 2023
Opinion

The cuts will impact several teams, most of them in Amazon's human resources and stores division.

On Wednesday evening, Amazon CEO Andy Jassy said that the company planned to eliminate over 18,000 people, thousands more than originally expected.

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He recalled that Amazon had decided to reduce the number of workers due to the difficult situation prompted by economic uncertainty.

"In November, we communicated the hard decision to eliminate a number of positions across our Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization," he said.

Jassy added that the most recent analysis of the company's financial situation and prospects resulted in "the difficult decision to eliminate additional roles." The cuts will impact several teams, most of them in Amazon's human resources and stores division.

"Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure, Jassy said.

Nevertheless, the Amazon CEO was optimistic because he expects his company staff to be inventive, resourceful, and scrappy right now. 

"Companies that last a long time go through different phases. They are not in heavy people expansion mode every year," he added.

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