The layoffs at Amazon will continue into next year, the CEO says

The layoffs at Amazon will continue into the new year, CEO Andy Jassy said in a new memo Thursday.

The announcement comes a day after the tech company began laying off employees on its devices team, which focuses on products like voice-enabled Alexa, according to a memo from Dave Limp, senior vice president of devices and services.

“This year’s assessment is more difficult due to the fact that the economy remains in a tough spot and we’ve been hiring quickly over the past few years,” Jassy said Thursday.

Decisions on the latest role cuts at Amazon will be shared in early 2023, Jassy said. It’s not yet certain how many jobs will be affected, though the cuts will affect Amazon’s stores and People Experience and Technology Solutions organizations, he said.

The move adds the company to a list of major tech companies that have cut jobs in recent weeks, including Facebook parent company Meta and Twitter.

Limp’s memo did not detail the extent of the layoffs, but the job cuts come at a time when the company typically expands its workforce during the busy holiday season.

“We continue to face an unusual and uncertain macroeconomic environment,” said Limp’s memo. “After a thorough series of reviews, we recently decided to consolidate some teams and programs.”

“In cases where employees cannot find a new role within the company, we will support the transition with a package that includes severance pay, transition pay and outside employment,” the memo added.

The layoffs follow job cuts at other major tech companies as industry titans pull back from record sales achieved during the pandemic, as billions around the world were forced into isolation. Customers sitting at home relied on delivery services such as e-commerce and virtual connections through social media and video conferencing.

However, lingering recession fears, rising interest rates and a return to a pre-pandemic lifestyle have left the tech sector in trouble.

PHOTO: Andy Jassy, ​​CEO of Amazon.Com Inc., speaks at the Bloomberg Technology Summit in San Francisco, June 8, 2022.

Andy Jassy, ​​CEO of Amazon.Com Inc., speaks at the Bloomberg Technology Summit in San Francisco, June 8, 2022.

David Paul Morris/Bloomberg via Getty Images

Under new owner Elon Musk, Twitter laid off about half of its 7,500 employees, citing losses of about $4 million per day.

Days later, Meta announced it would cut about 11,000 employees, representing about 13% of its workforce. The company reported a second consecutive quarter of declining sales last month.

Lyft, Netflix, Coinbase, Salesforce, Microsoft and Snap are among a slew of other tech companies that laid off employees this year.

PHOTO: Amazon logo seen at the entrance to Amazon's Shannon Building in Dublin.

Amazon logo seen at the entrance to Amazon’s Shannon Building in Dublin.

Photo by Artur Widak/NurPhoto via Getty Images

The tech-heavy Nasdaq is down more than 25% in 2022. Shares of Amazon are down 18% this year.

Third-quarter results released by Amazon last month fell short of analyst expectations for revenue, sending the stock down 13% during extended trading on the day of the announcement.

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