Amazon Confirms Layoffs Impacting 18,000 Workers After News Was Leaked

Amazon is starting the new year with layoffs affecting more than 18,000 employees. This is the largest group of tech workers to face job cuts in recent months.

Amazon CEO Andy Jassy announced the layoffs in a message shared with employees. He didn’t say whether the layoffs include Amazon Web Services (AWS).

AWS implemented a hiring freeze last year which it has yet to lift.

Jassy cited the “uncertain economy” and rapid hiring over the last several years as reasons for the layoffs, which he hadn’t planned to announce until later this month.

Amazon’s Andy Jassy

“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,” Jassy said. “I also shared that we weren’t done with our annual planning process and that I expected there would be more role reductions in early 2023.”

Layoffs Mostly Impact Amazon Store, PXT Workers

The latest layoffs are impacting several Amazon teams, Jassy said. However, the majority of layoffs are in Amazon stores and PXT organizations.

“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” he said. “However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me. We intend on communicating with impacted employees (or where applicable in Europe, with employee representative bodies) starting on Jan. 18.”

For its third quarter of 2022 ending Sept. 30, Amazon reported a 15% increase in net sales to $127.1 billion, compared with $110.8 billion in third quarter of 2021. However, its profit decreased to $2.9 billion in the third quarter, compared with $3.2 billion in the third quarter of 2021.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said. “These changes will help us pursue our long-term opportunities with a stronger cost structure. However, I’m also optimistic that we’ll be inventive, resourceful and scrappy in this time when we’re not hiring expansively and eliminating some roles. Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year.”