Amazon’s CEO, Andy Jassy, has announced that job cuts will continue at the company into 2023.
It was attributed to the “challenging spot” that the economy sits in, but also Jassy has said that the layoffs and buyouts are part of the annual operating planning review of the company.
In a team update from Dave Limp, Senior Vice President at Amazon, he spoke of how they “continue to face an unusual and uncertain macroeconomic environment.”
Amazon’s overall profits were below expectations in 2022, despite their third-quarter earnings improving.
Amazon joins many other tech giants, such as Twitter, Meta, Google and Microsoft who have recently let go of a significant part of their workforce.
Exactly how many jobs will be lost?
The exact number of jobs that have been cut has not been confirmed, but both The Wall Street Journal and The New York Times both report that around 10,000 will be affected.
They are expected to affect mostly corporate employees, not warehouse workers. If this number is correct, it will be Amazon’s largest layoff yet.
In a note from Andy Jassy about role eliminations, he wrote that they “haven’t concluded yet exactly how many other roles will be impacted”.
He also wrote that “this is the most difficult decision we’ve made”. He continues to state that “Amazon has weathered uncertainty and difficult economies in the past, and we will continue to do so.”
What have Amazon employees been offered?
If employees voluntarily leave the company, they will be offered a severance payment of three months’ pay. They will also receive one week of salary for every six months of tenure, according to CNBC.
Limp wrote that “[i]n cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support.”
Simon Noble, SVP EMEA, Magnit, comments:
“Businesses across the tech sector are experiencing significant staffing changes, as a wave of redundancies hits the industry with force. Now is a good time to reassess long-term talent strategies, and prepare for any future shift. In order to be more agile in responding to variable economic conditions, businesses should consider leveraging different types of workers. For instance, contingent workers, those who work on a project or temporary basis, are an effective source of top talent to fulfil fluctuating business needs.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
