Richard Ginika Izuora/Agency Report
Job cuts at Amazon are a sign of tough times to come for tech workers.
The e-commerce behemoth had first announced plans to pare back its workforce in November, citing rapid over-hiring during the pandemic and growing economic uncertainty.
In a note published on Amazon’s website on January 5, CEO Andy Jassy revealed the extent of those cuts: 18,000 roles. That’s far more than the nearly 10,000 jobs, or 3 per cent of its office workforce, Amazon had anticipated eliminating.
The November job cuts largely affected Amazon’s devices and books businesses. At the time, the company had also announced a voluntary reduction offer for some employees in its people, experience, and technology (PXT) organization, adding that more downsizing was on the cards in early 2023. As anticipated, the majority of the roles eliminated this time around are in Amazon Stores and PXT organizations.
“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,” Jassy wrote.
Typically, employees are informed before public announcements, but Jassy was forced to make today’s statement shortly after the Wall Street Journal broke the story. The company says it will start communicating with affected employees starting January 18.
