The layoffs, which started in November and continued into January as originally indicated, are in addition to the reduction. More than 18,000 employees were affected by that round, the majority of whom worked in the company’s retail, devices, recruiting, and human resources departments.
To save costs, Amazon decided to fire additional staff. The economy and the “uncertainty that prevails in the foreseeable future” were also taken into consideration, according to Jassy. The second stage of the company’s annual budgeting process, known as “OP2” internally, has recently been completed.
Amazon CEO’s Response
“The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole,” Jassy said.
According to Jassy’s memo, the most significant effects of the most recent round would be seen by Amazon’s cloud computing, human resources, advertising, and Twitch live-streaming businesses. Dan Clancy, the CEO of Twitch, stated that the most recent wave of job cuts at Amazon would result in the layoff of about 400 individuals. Twitch’s user and revenue growth, according to Clancy, hasn’t “kept pace with our goals” because of the recession.
After embarking on a hiring binge during the Covid epidemic, Amazon is currently facing the largest layoffs in corporate history. By the end of 2021, the company’s global employment has increased from 798,000 in the fourth quarter of 2019 to over 1.6 million.
Jassy is also taking on a comprehensive assessment of the business’s costs as it struggles with the recession and the sluggish growth of its primary retail division. Amazon stopped hiring for its corporate personnel, shelved certain test projects, and delayed the growth of its warehouses.
Jassy stated he is still bullish about the company’s “biggest companies,” retail and Amazon Web Services, as well as smaller, emerging divisions that continue to justify the investment, despite the company’s plans to operate more efficiently this year. To add to this agony, on Monday, Amazon stock experienced a 1% decline.
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