Amazon to cut over 18,000 jobs, higher than initially planned

Another major layoff in the tech industry.

Yen Zhi Yi | January 05, 2023, 05:59 PM

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Amazon will be laying off just over 18,000 staff from Jan. 18 onwards, according to a public staff note released by the company’s Chief Executive Andy Jassy on Jan. 5.

Jassy said that the reviews on workforce reductions have been ongoing since November 2022, and that the company has come to a “difficult decision” to eliminate even more job roles, surpassing the initial planned number of around 10,000 staff.

The job eliminations will largely impact those working in Amazon stores and its People, Experience and Technology (PXT) organisations.

According to Reuters, the layoffs will eliminate six per cent of Amazon’s corporate workforce which consists of approximately 300,000 staff. The company reportedly employs more than 1.5 million people.

The CEO said that Amazon chose to break the news of their job elimination due to an informational leak by one of its staff.

The workforce reduction also comes after the company doubled its base pay cap to US$350,000 (S$469,000) in order to attract more talent.

Cutting down costs

Amazon was one of the companies which profited the most from online shopping as a result of the Covid pandemic, according to the Wall Street Journal.

However, as customers return to brick-and-mortar stores, the company initiated a cost-cutting review to cut back on unprofitable areas.

Difficult times

Amazon’s CEO also added that the company is aware that job cuts would be “difficult for people” and that the team would be working to support the affected employees, such as providing support packages.

The announcement comes amidst a series of layoffs in major tech companies like Meta Platforms Inc. and Twitter.

The CEO ended the note by thanking the affected staff for their contributions to Amazon and the work they have done for their customers.

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Top images by SOPA Images & Michael M. Santiago via Getty Images