LOCAL NEWS
Amazon layoffs affect additional 9,000 positions in AWS, ads, Twitch
Mar 20, 2023, 8:06 AM | Updated: 9:10 am
FILE - An Amazon logo appears on a delivery van, Oct. 1, 2020, in Boston. Amazon is pausing construction of its second headquarters in Virginia following the biggest round of layoffs in the company’s history and shifting landscape of remote work. The Seattle-based company is delaying the beginning of construction of PenPlace, the second phase of its headquarters development in Northern Virginia, said John Schoettler, Amazon’s real estate chief, in a statement. (AP Photo/Steven Senne, File)
Credit: ASSOCIATED PRESS
(AP Photo/Steven Senne, File)
Amazon CEO Andy Jassy announced Monday morning in a message to employees that the tech giant would be laying off an additional 9,000 employees after laying off 18,000 already this year.
This brings the total number of layoffs at Amazon to 27,000 employees. Jassy said that the main departments that would experience layoffs include AWS, PXT, Advertising, and Twitch.
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“I believe the result of this year’s planning cycle is a plan that accomplishes this objective. I remain very optimistic about the future and the myriad of opportunities we have, both in our largest businesses, Stores and AWS, and our newer customer experiences and businesses in which we’re investing,” Jassy said in the announcement.
As to why Amazon did not include this second round of layoffs in the ones announced in January, Jassy said that the main reason was that not every team had completed the necessary analysis of what cuts could be made.
Separation payments, transitional health insurance benefits, and external job placement support are being promised to all the employees that are being let go.
This is yet another cost-cutting measure for Amazon, which reported $149.2 billion in revenue in December after cutting its charity program, vacating its offices at West 8th Tower, and putting the construction of its second headquarters on pause.
Among the job cuts, Amazon is also trying to get its employees back to the office. Last month, Jassy said the company would require corporate employees to return to the office at least three days a week, a shift from its prior policy that each team decides what system worked best for them. The change, effective May 1, has ignited some pushback from employees who say they prefer to work remotely.
These job cuts were part of a broader, industry-wide cost-cutting move to trim the workforce amid dropping profits and fears of a recession. Microsoft, Meta, and other tech companies are just a few of the companies that have also been cutting down their workforce.
