Amazon Plans to Lay Off Another 9,000 Employees

Amazon plans to lay off 9,000 corporate and technology employees by the end of April, adding to the 18,000 positions that were cut at the end of last year and this January, Andy Jassy, ​​the company’s chief executive officer, speak in a note to employees on Monday.

The new rounds of layoffs, which make up about 3% of the company’s workforce, will target workers in some of Amazon’s most profitable divisions that had previously been overlooked, including Amazon’s cloud business and advertising operations. These two business segments have much higher profit margins than Amazon’s core retail business, according to financial analysts and filings.

Jassy wrote that the company wrapped up its annual planning session last week, where it focused on streamlining costs and headcount.

“The most important tenet of our annual plan this year is to be leaner while doing so in a way that allows us to remain strongly invested in the key long-term customer experience we believe in. that can dramatically improve the lives of customers and Amazon as a whole,” he wrote.

For more than a year, Jassy has pursued cost-cutting at Amazon. The company quickly added staff during the pandemic and Prioritize some projects lack of clear ways to be profitable. He withdrew the expansion of the company’s warehousing operations, and pause work in the largest phase of the company’s planned second headquarters near Washington, DC

The company froze hiring last fall and by November planned to lay off about 10,000 employees, with a goal of expanding to 18,000 by early January.

Amazon employed about 1.54 million employees at the end of last year, down 4% from a year earlier. But most of those employees are hourly workers who power their warehouse operations.

Twitch, the Amazon-owned live-streaming site, and HR teams will also face layoffs.

Mr Jassy said management has yet to determine which workers will be laid off, but they expect to do so in mid to late April. He said the company could still pursue some “limited hiring” in strategic areas.

This is an evolving story. Check back for updates.


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