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The cuts come on top of layoffs previously announced by Amazon last November and extended through January. Thus, a total of 27,000 employees belonging to the hardware and services, human resources and retail teams will leave the company.
Amazon reportedly cut 27,000 positions in recent months, or 9% of its corporate workforce of about 300,000 people. The latest cuts will affect the divisions of web services, human resources and publicity, the results of which, the company pointed out, have not been satisfactory.
The layoffs will also affect the unit of streaming from Amazon, Twitch. Dan Clancy, who was named CEO of the platform Last week, there was an advance that the layoffs were greater than 400 employees.
Amazon is looking to nail down who it will lay off in the new round of job cuts before April. Following the announcement, the company’s shares fell 1.8%.
The corporation follows a trend of layoffs in the technology sector, which has seen some of the world’s most valuable companies, including Microsoft Corp and Alphabet Inc, cut ties with a staggering number of employees they previously hired en masse.
“I don’t think this means much to other companies, other than that they will all be more careful before letting their workforce skyrocket in the future,” said Michael Pachter, an analyst at Wedbush Securities.
Facebook parent Meta Platforms Inc last week announced a cut of 10,000 jobs this year, kicking off a second round of layoffs in the industry after cutting more than 11,000 jobs in 2022.
Amazon CEO Andy Jassy said the decision was the conclusion of an ongoing review of priorities and uncertainty about the economy. “Some may wonder why we don’t announce these feature reductions with the ones we announced a couple of months ago,” he wrote. “The short answer is that not all the teams had finished their analysis by the end of the fall,” he added.
“Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and staff,” Jassy commented.
The Athena Coalition, a labor group and activist critical of Amazon, commented that “none of these layoffs have to happen.” And he added: “Jassy is choosing to produce them to swell Amazon’s income statement.”
In recent months, the company has scaled back or shut down entire services, such as its virtual primary care offering for businesses.
with Reuters
