Net Worth

Amazon will Extend Mass Layoffs Until 2023

Amazon CEO Andy Jassy informed employees on Thursday that layoffs would continue until next year.

“I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time (and we’ve had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic),” Jassy said.

“It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted,” he added.

According to the company, management will notify several employees of their scheduled terminations. As a result, the decision will impact several departments, including devices and services. The companies also gave employees the option of a voluntary buyout. The buyout allows the company to accelerate the layoff of employees. It also provides financial packages to terminated employees for a set period.

According to sources, Amazon intends to lay off over 10,000 employees. However, the number will rise depending on the company’s state. According to the statement, Amazon will reduce its workforce due to the worsening economic conditions in the United States. In the United States, inflation slows operations and discourages buyers from spending their money.

Read Also: UK Government will Spend $66 Billion to Stave Off Inflation

Amazon laying off employees like others

Amazon is one of many companies that has reduced its workforce in recent months. For example, meta, Facebook’s parent company, laid off 13% of its employees last week. Meanwhile, Twitter, Salesforce, Shopify, and Strip announced the layoffs of several employees. However, with the holidays quickly approaching, Amazon felt compelled to hire warehouse workers.

“Those decisions will be shared with impacted employees and organizations early in 2023. We haven’t concluded yet exactly how many other roles will be impacted (we know that there will be reductions in our Stores and PXT organizations). Still, each leader will communicate to their respective teams when we have the details nailed down,” Jassy’s statement added.

Read Also: Energy Authorities Brought Back 100% of Nation’s Electricity

A difficult decision

According to Jassy, the company made a tough decision. However, the current market conditions force them to adapt. He contrasted how the economy deteriorated over time with the rapid rate at which Amazon hired new employees. As a result, the company suffered a significant revenue loss.

“Amazon has weathered uncertainty and difficult economies in the past, and we will continue to do so. We have big opportunities ahead, both in our more established businesses like Stores, Advertising, and AWS, but also in our newer initiatives that we’ve been working on for a number of years and have conviction in pursuing (e.g., Prime Video, Alexa, Kuiper, Zoox, and Healthcare),” added the statement.

“I want to thank each of you for your continuing contributions during this challenging time and as we gear up to deliver for customers during the busy shopping season,” it concluded.

Photo Credit: Mike Blake

Source: CNBC

Opinions expressed by Net Worth contributors are their own.

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