The CEO of Amazon, Andy Jassy, announced another round of layoffs for 2023, with over 9,000 workers to be removed from the company. Most of the layoffs will be from its advertising and Twitch departments. This round of layoffs is the second one this year. The company warned of major layoffs this year, with the first one happening back in January. The company has laid over 18,000 workers just this year. Andy Jassy announced this in a blog post on Monday. Jassy also explained that the company overhired in recent years, especially in the above-mentioned departments. He also claims that the uncertain economy forced the company to make such a tough decision.
Jassy stated that however difficult the decision to reduce the workforce was, it was necessary. Such a reduction in the workforce ensures the best outcome for the longevity of the company. According to the blog post, this decision was not something the company had foreseen. After analyzing the situation, the company decided to take action. Despite being laid off, the employees will still benefit from separation payments, transitional health insurance benefits, and job placement support. This process is likely to finish by mid to late April.
Major Layoffs In The Tech Industry
The news comes a few weeks after Meta Platforms announced its plan to cut 10,000 jobs this year. For your information, Meta had the first mass layoff in the fall, laying off more than 11,000 workers. Since the year 2023 began, tech companies have announced about 140,000 layoffs.
The current global economy has affected Amazon, Meta, and hundreds of other major companies negatively. Amazon’s cloud services, advertising, and Twitch departments experienced a major slowdown in sales. The decision to lay off thousands of workers highlights the current state of the global economy. Major banks going bankrupt, such as Silicon Valley Bank and Credit Suisse, are degrading the economy further. Despite the layoffs, Amazon remains one of the biggest employers in the world.