Amazon revealed yesterday that it planned to axe another 9,000 jobs in the next few weeks, adding to the 18,000 layoffs it announced in January.
The reductions will be made to the company’s cloud services, advertising and Twitch units, with Chief Executive Andy Jassy saying “uncertain economic conditions” were behind the decision.
In the memo to staff, he wrote: “This was a difficult decision, but one that we think is best for the company long term.”
Overall, the cuts in recent months account for around 9% of Amazon’s roughly 300,000-strong corporate workforce.
Amazon’s moves come amid a wave of redundancies across the Big Tech sector as recession fears hit both corporate and consumer spending globally.
After expanding rapidly to meet a surge in demand for its services during the pandemic, Amazon is now focused on reducing costs, cutting non-essential business operations, and slowing hiring.
Last month, the online giant warned that its operating profit could fall to zero at the start of this year as its cost-saving drive fails to make up for the impact of consumers and businesses clamping down on spending.
NAM Implications:
- A 9% cut in headcount is understandable…
- …given a 50% fall in Amazon’s share price.
- Time to anticipate the impact of Amazon’s new focus on
- Reducing costs
- Cutting non-essential business operations
- And slowing hiring
- …in terms of their impact on your business?
