Amazon has revealed plans for a second phase of job cuts with approximately 9,000 positions to be eliminated across various departments. Andy Jassy, CEO, Amazon sent a memo to staff, acknowledging that the decision was a tough one, but crucial for the company’s future prosperity.
The new round job cuts will impact departments including AWS, People, Experience, and Technology (PXT), Advertising, and Twitch. This comes after a previous round of layoffs that occurred between November and January, during which over 18,000 employees were let go. The previous round mainly impacted workers in the retail, devices, recruitment, and human resources departments.
In the memo, Jassy stated that the company is focused on streamlining its cost and is based on both economic factors and the ‘uncertainty’ that lies ahead. Jassy also stated that the affected teams have not yet made definitive decisions regarding which positions will be affected, but they anticipate finalising those decisions by the middle to end of April.
Amazon has committed to offering assistance to the affected employees during the layoffs. This support will include a severance payment, transitional health insurance benefits, and external job placement support.
Despite its efforts to operate more efficiently, Jassy expressed optimism about the future of Amazon’s largest business segments, such as retail and Amazon Web Services, as well as new divisions that merit further investment. He also expressed gratitude to those employees who will be affected by the layoffs, thanking them for their contributions to the company and its customers, looking to those still employed, collaborating to improve customer experiences and innovating to achieve this goal.
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