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Why Amazon To Lay Off Over 18,000 Employees

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Amazon

Amazon announced Wednesday it will cut more than 18,000 jobs from its workforce, citing “the uncertain economy” and the fact that the retail giant has “hired rapidly over the last several years.”

“Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles,” said CEO Andy Jassy in a statement. The company had announced 10,000 layoffs in November.

“We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support,” Mr Jassy said.

He added: “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so.”

Mr Jassy did not specify where affected employees were located, but he said the firm would communicate with organisations that represent employees “where applicable in Europe”.

He also said the “majority of role eliminations” would be in the Amazon Stores operations and its People, Experience, and Technology team.

Two months ago the firm said it would focus on reducing expenses in its annual review of business operations.

Amazon had already introduced a hiring freeze and halted some of its warehouse expansions, warning it had over-hired during the pandemic.

It has also taken steps to shut some parts of its business, cancelling projects such as a personal delivery robot.

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