Amazon to slash 18,000 more jobs, says CEO Andy Jassy in note to employees

Amazon aims to shed more than 18,000 roles as it cuts costs, said the technology giant's boss, Andy Jassy. The chief executive wrote a note to staff where he informed them that "affected workers will be informed from 18 January." The note released on an 'update from CEO Andy Jassy on role eliminations' shared that around 6% layoff would happen which would affect a roughly 300,000-strong corporate workforce. This comes after the tech company announced last year that it would reduce its headcount. 

"We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support," said Jassy in the note addressed to the Amazon Staff. Further, he added, "Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so."

In November, Jassy told staff that layoffs have been done because of the economic landscape and the company’s rapid hiring in the last several years and would impact people working in Amazon Fresh and Amazon Go, and its PXT organizations, reported Associated Press. 

Also, the uncertain economy has made this review decision more difficult for the firm. "In November, we communicated the hard decision to eliminate a number of positions across our Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization," read the note by Amazon CEO.

Earlier, the US media had reported that the company would shed around 10,000 roles, reported BBC. Due to economic uncertainty, the company has already frozen its hiring process and paused its expansion projects. Further, they have halted their personal delivery robot, reported BBC.

Layoffs in giant tech companies 

Apart from Amazon, there are many other giant companies that have laid off their employees. Business software maker Salesforce, which is a U.S. technology company, has also announced major job cuts as it prunes payrolls that rapidly expanded during the pandemic lockdown, reported Associated Press. 

According to Salesforce, the employees losing their jobs would receive nearly five months of pay, health insurance, career resources, and other benefits, reported Associated Press. The same has been confirmed by Amazon that would be giving a separation payment, transitional health insurance benefits, and job placement support. 

Mark Zuckerberg, the CEO of Facebook, Instagram, and WhatsApp's parent company Meta, confirmed the social media company will lay off 13% of its workforce (11,000 employees) on November 9. While talking about the layoffs, he blamed the company's low revenue on a “macroeconomic downturn” and “increased competition", making it one of the largest rounds of cuts for a major tech company so far this year, following a hiring freeze announced in September.