Amazon has announced plans to reduce its global workforce by around 9,000 jobs as part of its ongoing cost-cutting efforts. The majority of the job cuts will occur in departments such as cloud computing and advertising.
This comes after the firm announced an earlier round of layoffs that affected 18,000 employees earlier this year, as well as the closure of some UK warehouses and an Amazon Fresh store in London.
In an official statement, Amazon CEO Andy Jassy explained that despite the company’s recent growth in several areas, the current economic climate has forced the firm to prioritise the long-term health of its business and streamline its costs and staffing levels.
Amazon has stated that it will provide support to affected employees, including a separation payment, transitional healthcare, and assistance in finding new employment opportunities.
This latest move by Amazon follows similar cost-cutting measures by other tech giants, including Google and Meta (previously Facebook), which have had to balance budgetary concerns with the need to stay competitive in the market.
Amazon’s decision to reduce its workforce comes as consumers have cut back on spending due to rising living costs. The tech sector as a whole has also experienced a significant number of job cuts in recent months, with over 140,000 jobs lost worldwide since the beginning of the year, according to industry tracking site layoffs.fyi
Jassy acknowledged that cutting jobs is always a difficult decision and expressed his gratitude to affected employees for their hard work and dedication to the company and its customers. He also emphasised that by becoming more streamlined, Amazon will be better able to invest in critical long-term customer experiences that can enhance the lives of its customers and the company as a whole.
At present, it is unclear which countries will be affected by the job cuts, and Amazon has not provided any additional details about the specific roles or departments that will be impacted.