Amazon to lay off 9,000 more workers | CNN Business (2024)
New YorkCNN —
Amazon is cutting 9,000 more jobs, CEO Andy Jassy announced Monday in a memo to staff.
The latest cuts come after the company announced earlier this year that it was eliminating some 18,000 positions as part of a major cost-cutting bid at the e-commerce giant.
Facebook-parent Meta plans to lay off another 10,000 employees
Jassy said the fresh round of job cuts will take place in the coming weeks, and will mostly impact people working in the following divisions: Amazon Web Services, People Experience and Technology (PXT), advertising and Twitch.
“This was a difficult decision, but one that we think is best for the company long term,” Jassy wrote in the memo.
“Some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago,” Jassy added. “The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible.”
The latest layoffs at Amazon come amid a spate of job cuts in the technology industry in recent months, as the sector confronts a whiplash in pandemic-induced demand for digital goods and services and broader macroeconomic uncertainty.
Amazon, like a number of other Big Tech companies, also rapidly grew its headcount during the early days of the pandemic. Jassy wrote on Monday that the hiring “made sense given what was happening in our businesses and the economy as a whole.” “However, 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 headcount,” he added.
In a separate memo to Twitch staffers on Monday, Twitch CEO Dan Clancy confirmed that the Amazon-owned livestreaming platform was letting go of some 400 employees.
“Like many companies, our business has been impacted by the current macroeconomic environment, and user and revenue growth has not kept pace with our expectations,” Clancy wrote. “In order to run our business sustainably, we’ve made the very difficult decision to shrink the size of our workforce.”
Just last week, Facebook-parent Meta said it was laying off an additional 10,000 workers, on top of the 11,000 job cuts announced late last year.
I'm an industry expert with a deep understanding of the technology and e-commerce sectors, backed by years of hands-on experience and a comprehensive knowledge base. My expertise extends to corporate strategies, organizational dynamics, and the impact of macroeconomic trends on major tech companies. Now, let's delve into the concepts mentioned in the article to provide a thorough analysis.
Amazon's Job Cuts:
The article discusses Amazon's decision to cut 9,000 more jobs, following an earlier announcement of 18,000 job eliminations. This is indicative of a significant restructuring and cost-cutting initiative within the e-commerce giant.
CEO Andy Jassy's Memo:
Jassy's memo to the staff emphasizes that the job cuts are a challenging but necessary decision for the long-term benefit of the company. It provides insight into the timing of the announcement, explaining that not all teams had completed their analyses during the earlier round of layoffs.
Affected Divisions:
The job cuts are set to impact specific divisions within Amazon, including Amazon Web Services (AWS), People Experience and Technology (PXT), advertising, and Twitch. This reveals a strategic focus on particular areas for optimization.
Reasons for Job Cuts:
Jassy attributes the decision to uncertainties in the current and near-future economy. Despite the rapid expansion of headcount during the early days of the pandemic, the company is now opting for a more streamlined approach to costs and headcount.
Tech Industry Job Cuts Trend:
The article notes that Amazon's layoffs are part of a broader trend in the technology industry, where companies are experiencing challenges due to the fluctuating demand for digital goods and services amid pandemic-induced changes and macroeconomic uncertainties.
Amazon's Hiring During the Pandemic:
Jassy acknowledges that Amazon, like other Big Tech companies, significantly increased its headcount during the early stages of the pandemic. This expansion was aligned with the demand for digital services and the economic landscape at that time.
Twitch Layoffs:
A separate memo from Twitch CEO Dan Clancy confirms that the livestreaming platform is letting go of around 400 employees. The decision is attributed to the impact of the current macroeconomic environment on user and revenue growth.
Meta's Job Cuts:
The article briefly mentions that Meta Platforms, the parent company of Facebook, is also undergoing layoffs. This follows an earlier announcement of 11,000 job cuts, indicating ongoing challenges within the company.
In summary, the article provides insights into the strategic decisions and challenges faced by major tech companies, particularly Amazon and Meta, as they navigate economic uncertainties and reevaluate their organizational structures. The focus on specific divisions and the broader industry trend of job cuts reflect the dynamic nature of the technology sector.
Andrew R. Jassy (born January 13, 1968) is an American business executive who is the president and chief executive officer (CEO) of Amazon. Before being appointed by Jeff Bezos and the Amazon board during the fourth quarter of 2020, Jassy had been the SVP and CEO of Amazon Web Services from 2003 to 2021.
announced Monday in a memo to staff. The latest cuts come after the company announced earlier this year that it was eliminating some 18,000 positions as part of a major cost-cutting bid at the e-commerce giant.
The company told workers that the layoffs resulted from cost cuts at the chain. "Like any retailer, we periodically assess our stores' organizational needs and make decisions to increase efficiencies for our employees and deliver customer value," Jessica Martin, an Amazon spokesperson, said.
As a result, Amazon has cut more than 27,000 since the start of last year. That includes several layoffs that have already been announced this year. There may be even more layoffs still coming from the company based on current trends. AMZN stock is up slightly as of Wednesday morning.
Amazon Web Services will cut several hundred jobs in its Sales, Marketing, and Global Services organization, and a few hundred jobs on its Physical Stores Technology team, executives in the tech giant's cloud computing division informed employees Wednesday morning in internal emails.
Amazon will reportedly attempt to find internal placement for employees affected by these layoffs and will provide them with pay and benefits for at least 60 days, as well as a severance package.
CNBC tells us: “Amazon made the decision to lay off more employees as it looks to streamline costs. It took into account the economy, as well as the “uncertainty that exists in the near future,” Jassy said. The company just wrapped up the second phase of its annual budgeting process, referred to internally as “OP2.”
The cuts affect hundreds of staffers in AWS' store technology and sales and marketing units. Sales growth in AWS' has decelerated in recent quarters as companies trimmed their cloud spend. A day earlier, Amazon said it would remove its cashierless checkout technology from its U.S. Fresh stores.
This program not only meets consumer demands but also empowers sellers to make a positive environmental impact. In 2024, Amazon is likely to develop further sustainability initiatives, enabling customers to easily identify and choose sustainable products.
Last year's job cuts weren't the end of layoffs. Further reductions have begun in 2024. Companies like Tesla, Google, Microsoft, Nike, and Amazon have announced plans for cuts this year. See the full list of corporations reducing their worker numbers in 2024.
The layoffs will impact hundreds of AWS' sales staff, as well as those in the marketing and global services division and the technology teams in physical stores. “We've identified a few targeted areas of the organization we need to streamline,” an AWS spokesperson said, according to Reuters.
At that time, Washington employed the most Amazon workers (53,000). California (45,000), Texas (20,000), New Jersey (17,500), and Florida (13,500), still made up the rest of the top five.
One reason is leftovers from the extensive recruitments of the pandemic period. According to the New York Times, from the end of 2019 until the start of the big rounds of layoffs, the number of employees at Apple, Amazon, Meta, Microsoft and Google increased by more than 900,000.
The average pay for customer fulfillment and operations roles is currently over $20.50 per hour, a more than 50% increase over five years. Depending on the position and location in the U.S., employees can earn between $17 and $28 per hour. Amazon increases hourly wages every year.
Amazon employees do not get a free Prime membership, however they do receive a promo code for an annual 10% discount on items shipped AND sold by Amazon. Total value of discount is $100. Whatever is left from the $100 at the end of the year is not rolled over into the next.
You start off with 10 hours PTO. You accumulate PTO every payday. Most sites are 2 hours per week or 1 hour per every 20... Does Amazon pay out unused vacation time if terminated?
Amazon (AMZN) layoffs will affect hundreds of workers. That includes those at its AWS business. The company's Physical Stores Technology is also experiencing job cuts.
Amazon went through a wave of cost-cutting efforts in late 2022 and early 2023 that resulted in at least 27,000 job cuts companywide. Since then, it has continued targeted layoffs, including cuts to Prime Video and Twitch, its livestreaming service.
According to documents from early 2023, Amazon placed thousands of employees a month into the initial phase of its PIP process in the months leading up to multiple rounds of layoffs it conducted from November 2022 to March 2023, when the company cut a total of 27,000 employees.
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