Andy Jassy, CEO of Amazon Web Services.
CNBC
Amazon said Wednesday will cut over 18,000 jobs, a huge number of e-retailers first said it will remove last year.
The Wall Street Journal reported on the cuts earlier, which Amazon said before announcing the planned announcement.
related investment news
“Typically we wait to communicate these results until we can speak with the people directly affected,” CEO Andy Jassy wrote in a memo to employees published by the company on its blog. “However, since one of my teammates leaked this information externally, we decided it would be best to share this news first so you can hear the details directly from me.”
Tech companies are raising expectations for 2023 when they stopped last year, bracing for a prolonged economic downturn. Salesforce said on Wednesday it would cut its workforce by 10%, putting more than 7,000 out of a job. Both Amazon and Salesforce have acknowledged that they are hiring at a rapid pace during the pandemic.
Amazon specifically acknowledged that it has rapidly added workers to its warehouses as consumers move to online ordering. The company employed 1.54 million people at the end of the third quarter.
In November, Jassy said that Amazon would eliminate its role, including in physical stores and in the device and book division. CNBC reported at the time that Amazon was looking to lay off about 10,000 employees. Now the number is higher.
“Amazon has experienced an uncertain and difficult economy in the past, and we will continue to do so,” Jassy wrote. “These changes will help us pursue long-term opportunities with a stronger cost structure; However, I am also optimistic that we will be inventive, resourceful, and tireless this time when we do not hire expansively and eliminate some roles. .”
Amazon plans to inform employees who will lose their jobs from January 18, Jassy wrote, noting that the most cuts will come to the store and People, Experience, and Technology (PXT) group.
WATCH: Could Bezos return as CEO of Amazon?
