Amazon Chief Executive Officer Andy Jassy released a memo on Thursday, informing its employees that the company will be conducting layoffs again in early 2023. Amazon laid off some of its employees just this week. As per previous reports, 10,000 employees will be affected by the layoffs including members from the corporate and technology department.
2023 Layoffs
Amazon will be cutting jobs again in 2023, just after conducting mass layoffs this week. Chief Executive Officer Andy Jassy confirmed the news in a memo for its employees and states that it will be extending its planning process for the company. He added that chief executives will be making more adjustments, hence the role reductions.
Based on a report from The Verge, no confirmations yet from Jassy and the company on what specific departments and how many will be affected by the upcoming layoffs. However, he stated that some of the jobs that will be reduced are from Stores and People, Experience, and Technology organizations. Adding to this is that the economy remains challenging in these trying times and the previous rapid hirings for the last years.
As Amazon plans to extend its layoffs, the company clarified that future decisions will be shared once it is finalized. Jassy stated that the company's main priority is to communicate directly with its employees before making an announcement, both internally and publicly.
Bloomberg reported that 60 days will be given to them to find new jobs, and will be given a severance package based on tenure if ever they will not be landing to new work. The statement also includes that aside from job cuts, employees were also offered voluntary buyouts.
Mass Layoffs
The reported laying off of 10,000 employees of the company started this week, as managers and supervisors have begun to advise workers regarding the two months to transfer to another firm. As per TechCrunch's report, the CEO has been speeding up the company's cost-cutting measures, hence the layoffs. Amazon just recently projected the lowest revenue increase reported for the holiday quarter. In March, it was reported that Amazon's payroll also increased to 1.62 million for full-time and part-time employees, which dropped to 1.54 million in September.
These layoffs will be the company's biggest workforce decrease in the history of the e-commerce and cloud computing giant. Almost 3% of the company will be affected. Amazon would be the latest technology company to conduct mass layoffs, following Twitter cutting 50% of its workforce and affecting 3,700 employees, and Meta laying off 13% or 11,000 workers.
Vox also reported that these layoffs have been communicated first by the executives internally before announcing it to the public. Based on the latest statement from the CEO, this approach will still be continued.
Related Article : Amazon Begins Layoffs, Sees Decline in Retail Sector
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Written by Inno Flores
