What you need to know
- Amazon has announced that it will cut more than 18,000 roles at the company.
- Massive layoffs are an extension of previous announcements to remove various positions.
- The majority of affected employees are in the company’s Amazon Stores and People, Experience, and Technology organizations.
Massive job cuts at tech giants, including Amazon, show no signs of stopping amid uncertain global economic conditions. Amazon is removing over 18,000 roles for him in various teams, far more than originally expected.
An executive at the online retail giant confirmed in November that Amazon would cut jobs and possibly lose as many as 10,000 employees. In the same month, Amazon’s Devices & Services division also laid off some employees. The announcement from his CEO Andy Jassy today came as a surprise to many, at least when it comes to the number of jobs actually cut.
Jussie told employees in a memo (opens in new tab) This morning, we revealed that the latest cuts would hit Amazon’s people, experience and technology (PXT) and Amazon Stores organization hard. This follows previous layoffs in the devices and books divisions.
For some employees, the move may not come as a complete shock. When the company announced its cuts to Devices and Books and his PXT division in November, Jassy said he expected more roles to be cut in early 2023.
However, it turns out that Amazon originally planned to withhold this announcement from affected employees until January 18th. was intended.
Affected employees will receive “severance pay, temporary health insurance benefits, and outside employment assistance.” However, it is unclear what kind of retirement package will be offered.
Along with these changes, old faces may return to lead the company. Michael Batnick, managing partner at Ritholtz Wealth Management, predicts Jeff Bezos will make a comeback to head up his Amazon (via MarketWatch). (opens in new tab)). However, as Austin Business Journal reported, the layoff is the biggest in his Amazon history. (opens in new tab)Bezos could face tougher times due to his possible return.
