Amazon plans to eliminate around 18,000 roles, the company has confirmed in a memo sent to staff yesterday, January 5, 2022.
The message was shared by the company’s CEO Andy Jassy. He said leaders at the company had been advised since November last year to put customers and the long-term health of the business first.
Jassy said that later in the month he announced the decision to let go of some staff in the device and book businesses, as well as announcing voluntary reduction offers for some employees in organization, experience and technology.
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“I expect there will be further role reductions in early 2023,” he said.
“Between the cuts we made in November, and the ones we’re showing today, we plan to cut more than 18,000 roles.
“Some teams are affected, but the majority of role eliminations are within the Amazon Store and PXT organization.”
News of retrenchments leaked
Information about these retrenchments was apparently leaked before the CEO could communicate with staff, forcing him to make a statement.
“Normally we wait to communicate these results until we can speak to those directly affected. However, since one of our colleagues leaked this information outside, we decided it would be best to share this news first so you can hear the details directly from me. We intend to communicate with the affected employees … from January 18,” he said.
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Tough decisions in a tough economy
Jassy cited the strained economy as one of the reasons for the retrenchment. He said the elimination of 18,000 roles was necessary to see the brand weather these uncertain times, and help the company pursue long-term opportunities with a stronger cost structure.
He also pledged to work to support those affected and provide a package that includes severance pay, transitional health insurance benefits, and external job placement support.
“[We are] “We know very well that the removal of this role is difficult for people, and we do not take this decision lightly or underestimate how it will affect the lives of those affected,” he said.
*Compiled by Devina Haripersad