When the layoffs at Amazon will begin and how many people will leave the company has not yet been specified.
Amazon’s job cuts, announced Wednesday, will continue through early 2023, CEO Andy Jessee said in a letter to employees published yesterday.
Jesse said the company has been hiring rapidly over the past few years, but the economy is in a tough spot right now. As annual planning now continues into next year, 2023, “there will be more job cuts as managers continue to make adjustments.”
The Amazon CEO did not specify how many people will be laid off or when the process will begin, but noted that the cuts will affect “PXT (people, experience and technology) stores and organizations.” He added that the company will notify affected employees well before any layoffs are made public.
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On Wednesday, Amazon’s head of hardware, Dave Limp, said the company was consolidating the team and “certain positions are no longer needed.” According to a report by The New York Times, up to 10,000 jobs could be cut as a result of the changes.
It’s worth noting that the 10,000 employees represent just 3% of the company’s corporate workforce and less than 1% of its global workforce (of more than 1.5 million people and mostly hourly employees). If the figure turns out to be accurate, it would be the largest reduction in Amazon’s history. The company cut 1,500 jobs in 2001 during the dot-com crash, 15% of its workforce at the time. And it also laid off several hundred corporate employees in early 2018, after another period of rapid expansion.
The company said it will provide employees with a package that includes severance pay, temporary benefits and external employment support. Some employees will also be able to take up other positions in the company.
Amazon is another tech giant that has announced big cuts in the past few weeks. Meta cut 11,000 jobs in the biggest layoff in the company’s history, while Twitter recently said goodbye to roughly half its staff and thousands of contractors. In addition, a dozen Twitter employees reportedly left the company after criticizing their new CEO, Elon Musk, and hundreds more after his “stern ultimatum.”
Source: Engadget
