New year news for 18,000 Amazon employees

The WSJ had previously reported on the layoffs. Amazon said it plans to notify employees.

CEO Andy Jassy wrote in a note to employees, which was posted on the company blog: “We generally wait to announce this news after speaking with each directly impacted employee. However, because a colleague leaked this information to the outside, we decided to announce this information earlier so that you can get the details directly from me.”

From the setbacks in 2022, tech companies are bouncing back in 2023 and bracing for a protracted recession. American software company Salesforce said it will cut 10% of its staff, or more than 7,000 employees. Both Amazon and Salesforce admit that they are hiring massively during the pandemic.

Amazon specifically acknowledged that the company was adding too many workers in its warehouses as consumers moved to order more online. The company had about 1.54 million people at the end of the third quarter.

In November, CEO Jassy said Amazon would cut several divisions, including retail stores, equipment parts, and ordering. At the time, Amazon was looking to lay off about 10,000 employees. Now the number is even higher and is believed to be the most in a recent wave of layoffs by technology companies.

“Amazon has weathered economic turmoil and hardship in the past, and we will continue to do so,” CEO Jassy wrote. These changes will help us pursue long-term opportunities with stronger cost structures. I am also optimistic that we will become more creative and flexible when we no longer hire massively and eliminate some departments.”

Amazon plans to notify employees who are laid off from January 18. CEO Jassy noted that most of the layoffs are focused on retail stores and the People, Experience, and Technology (PXT) division.

According to CNBC