Amazon to lay off 9,000 more employees across AWS, Twitch, Advertising

E-commerce giant Amazon is set to lay off 9,000 more employees in the next few weeks, mostly in AWS, PXT, Advertising and Twitch. 

This move comes amid various lay off rounds in tech companies - including Meta's announcement of cutting 10,000 jobs. Amazon's announcement comes two months after it laid off nearly 18,000 employees.

In a memo, CEO Andy Jassy said that this was a difficult decision but one that is best for the company in the long-term.

"As part of our annual planning process, leaders across the company work with their teams to decide what investments they want to make for the future, prioritising what matters most to customers and the long-term health of our businesses. For several years leading up to this one, most of our businesses added a significant amount of headcount. This made sense given what was happening in our businesses and the economy as a whole,” Jassy said. 

Furthermore, he said that, “However, given the uncertain economy in which we reside and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount. The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”

The company has concluded its second phase of the operation plan, Jassy stated.

"As our internal businesses evaluated what customers most care about, they made re-prioritisation decisions that sometimes led to role reductions, sometimes led to moving people from one initiative to another, and sometimes led to new openings where we don’t have the right skills match from our existing team members,” Jassy stated. 

Furthermore, he said that this initially led to the elimination of 18,000 positions and as they complete the second phase of their planning this month, it led to these additional 9,000 role reductions.

“Some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago. The short answer is that not all of the teams were done with their analyses in the late fall and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,” Jassy said. 

“We will, of course, support those we have to let go, and will provide packages that include a separation payment, transitional health insurance benefits, and external job placement support,” he added.

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