Amazon will lay off an additional 9,000 employees in the coming weeks, CEO Andy Jassy announced in a memo to staff on Monday.
These cuts follow a previous round of layoffs that began in November and extended into January, which affected more than 18,000 employees primarily in its retail, devices, recruiting, and human resources groups.
Amazon decided to implement further layoffs to streamline costs, considering the current economy and the “uncertainty that exists in the near future,” Jassy explained.
The company recently concluded the second phase of its annual budgeting process, known internally as “OP2.”
“The overriding tenet of our annual planning this year was to be leaner while still investing robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole,” Jassy said.
The latest round of layoffs will primarily impact Amazon’s cloud computing, human resources, advertising, and Twitch livestreaming businesses, Jassy stated in the memo.
Twitch CEO Dan Clancy noted that approximately 400 people would be let go as part of Amazon’s latest round of job cuts. Clancy attributed this to the economic downturn and Twitch’s user and revenue growth not meeting expectations.
Amazon is undergoing the largest layoffs in its history after a hiring spree during the COVID-19 pandemic.
By the end of 2021, the company’s global workforce had grown to more than 1.6 million, up from 798,000 in the fourth quarter of 2019.
Jassy is also conducting a broad review of the company’s expenses as it contends with an economic downturn and slowing growth in its core retail business.
Amazon has frozen hiring in its corporate workforce, terminated some experimental projects, and slowed warehouse expansion.
Despite aiming to operate leaner this year, Jassy expressed optimism about the company’s “largest businesses,” retail and Amazon Web Services, as well as other new divisions that continue to warrant investment. Amazon shares closed down 1% on Monday.
