MYNORTHWEST NEWS

Seattle-based tech companies continue layoffs, ‘adjustments will be made’

Nov 18, 2022, 3:51 PM

Amazon store tech...

Amazon plans more layoffs. (Getty Images)

(Getty Images)

It is unclear if the worst is over when it comes to recent tech layoffs that profoundly impact employment in the greater Seattle region.

Thousands of workers have been given their pink slips, with others worried they may be next, and Amazon employees will have to wait until next year to find out whether they are on the latest hit list.

“Leaders across the company are working with their teams and looking at their workforce levels, investments they want to make in the future, and prioritizing what matters most to customers and the long-term health of our businesses,” CEO Andy Jassy wrote in a memo to workers.

Jassy explained that earlier in the month, positions were cut in the devices and books divisions. He wrote the layoffs will be announced next year.

“It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted,” Jassy said. “Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments.”

In other words, hold tight, we haven’t decided yet.

Tech layoffs aren’t ‘going to get better quickly,’ analysts say

The current expectations are that a total of 10,000 jobs will be cut.

Other tech companies are also talking about job cuts, but specifics are hard to come by. The rationale is overhiring plus a looming recession may contribute to these decisions.

While these cuts are the sector’s largest in history, they don’t seem to be having much impact on the overall employment rate in Washington.

The state gained 5,400 jobs in October, according to the October employment report issued by the Employment Security Department.

CNBC reports that cuts in the tech industry should not be an indicator of other industries.

“Morgan Stanley analysts said the large market cap of tech firms and ‘idiosyncratic’ hiring in tech relative to the rest of the labor market have resulted in tech layoffs having an outsized impact on perceptions.”

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Seattle-based tech companies continue layoffs, ‘adjustments will be made’