Amazon to Eliminate 9,000 More Positions Amid Continuing ‘Uncertainty’ in Economy

Amazon CEO Andy Jassy announced on Monday that the e-commerce giant will eliminate an additional 9,000 positions after concluding the second phase of a strategic review.

According to Jassy, the positions will be eliminated in the next few weeks and will affect roles at its Amazon Web Services (AWS), People, Experience and Technology (PXT), advertising, and Twitch divisions. The company’s senior management team expects to make final decisions on which jobs will be eliminated by “mid to late April,” the CEO said.

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Impacted employees will receive a separation payment, transitional health insurance benefits and external job placement support, Jassy said.

“For several years leading up to this one, most of our businesses added a significant amount of headcount,” Jassy said. “This made sense given what was happening in our businesses and the economy as a whole.”

However, the CEO continued that given the “uncertain economy in which we reside,” and the “uncertainty that exists in the near future,” Amazon has chosen to be more “streamlined” in its 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,” Jassy added.

This new round of layoffs come just months after Amazon announced it would cut 18,000 jobs in January.

Jassy announced the January staff reduction in a memo to employees and said the planning and review process for 2023 had been “more difficult given the uncertain economy” and the company’s rapid hiring over the last few years.

The reductions impacted the company’s Devices and Books businesses as well as the retailer’s Amazon Stores and its PXT organization.

After months of post-pandemic gains, many tech and retail companies like Amazon, which over-hired in 2021 and early 2022 are now trimming staff as inflation has hit many bottom lines. The additional concern of an impending recession is also not helping to calm fears, as companies look for a way forward.

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