18,000 Amazon employees to be laid off in company's largest downsizing in history
In a recent development, Amazon has decided to proceed with its plan to terminate the employment of over 18,000 employees, a significantly larger number than previously anticipated, signaling a deepening technology crisis.
These cuts, the most substantial in the company's 28-year history, are part of a larger trend of layoffs at major tech firms, with Amazon following in the footsteps of companies like Tesla in significantly increasing measures to downsize their workforce.
The wave of layoffs at Amazon will affect a higher number of individuals than initially expected.
On Wednesday evening, Amazon CEO Andy Jassy addressed the news in a blog post. In November, when news of the layoffs first surfaced, Amazon indicated that the number of roles affected by the cuts was fluid as leadership evaluated various aspects of the business.
It was originally predicted that the layoffs would impact approximately 10,000 people and continue into the new year. In his message to employees on the company blog, Jassy revealed for the first time the extent of the layoffs being implemented as the company seeks to trim expenses amid uncertain macroeconomic conditions.
A majority of the cuts within the company will affect Amazon Stores, the company's retail division, and People, Experience, and Technology, the HR arm. In the memo, Jassy stated, 'These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.'
Jassy had previously addressed the layoffs in November, mentioning that they would continue into 2023. Earlier media reports in November estimated the expected number of cuts at approximately 10,000 people, although Amazon did not provide a specific target.
Amazon had earlier informed employees that it would freeze corporate hiring, and the layoffs align with moves made by other companies, such as Meta, Twitter, Lyft, Redfin, Convoy, Stripe, Flyhomes, and many more seeking cost-cutting measures in a slowing economy.
Salesforce announced on Wednesday that it would be eliminating 10% of its workforce.
