“Between the reductions we made in November and those we shared today, we plan to eliminate just over 18.000 positions,” declared the CEO of the American group, Andy Jassy, in a statement sent to employees.
ADVERTISING
The downsizing plan is the biggest among recent job cut announcements affecting the U.S. technology sector. It's also the most severe plan in the Seattle-based company's history.
Jassy reported that the company's management was “deeply aware that these job cuts are difficult for people and we do not make these decisions lightly.”
“We are working to support those affected and offer them packages that include compensation, temporary health insurance and external help to find work,” he added.
ADVERTISING
Some of the layoffs will take place in Europe, according to Jassy, who added that affected workers will be informed as of January 18 of the layoff.
The sudden announcement, Jassy noted, was being made because “one of our teammates leaked this information externally.”
Citing sources close to the distribution giant, the specialized newspaper The Wall Street Journal reported that job cuts at Amazon could affect around 17.000 employees, a higher number than estimated.
ADVERTISING
The company had previously announced its plans to cut around 10.000 jobs in November.
“Amazon has weathered uncertain and difficult economic conditions in the past and we will continue to do so,” assured Jassy.
At the end of September 2022, the group had 1,54 million employees worldwide, excluding seasonal employees who work during periods of greater activity, especially during the end-of-year festivities.
ADVERTISING
During the pandemic, the company made major hires to meet demand, doubling its global team between 2020 and 2022.
In the third quarter, however, its net profit fell 9% year over year.
Today, large platforms in the technology sector — many with advertising-based business models — face budget cuts and advertisers reducing their spending in the face of rising inflation and interest rates.
ADVERTISING
This is the case of Meta, for example, Facebook's controller, which announced in November the cut of 11.000 jobs, which corresponds to something around 13% of its workforce.
Twitter, purchased in October by the billionaire Elon Musk, laid off about half of its 7.500 employees, while Snapchat cut approximately 20% of its employees in August, equivalent to 1.200 people.
(With AFP)
