A dispassionate note breaks the news.
when amazon (AMZN) – Get a free reportannounced it would cut 9,000 jobs On March 20, CEO Andy Jassy wrote a message to workers that was posted on an Amazon blog.
The lost jobs added to the 18,000 layoffs already announced in January.
DO NOT MISS: Amazon has very bad news
The new layoffs would affect Amazon Web Services (AWS), People Experience and Technology Solutions (PXT Solutions), advertising, and the live video streaming service Twitch.
“As we just wrapped up the second phase of our operating plan (“OP2″) last week, I am writing to share that we intend to remove around 9,000 more positions in the coming weeks, primarily across AWS, PXT, Advertising, and Twitch. This was a difficult decision, but we believe it is in the best interest of the company in the long run.” Jassy wrote.
To provide some context, Jassy’s note explained Amazon’s annual planning process in which the company decides what investments it wants to make for the future.
“For several years leading up to this, most of our companies added a significant number of staff. This made sense given what was happening at our companies and the economy in general,” Jassy wrote. “However, given the uncertain economy we live in and the uncertainty that exists in the near future, we have chosen to be more efficient in our costs and people.”
Jassy described how Amazon’s internal businesses made reprioritization decisions that led to feature reductions.
“Some may wonder why we don’t announce these feature reductions with the ones we announced a couple of months ago,” Jassy wrote. “The short answer is that not all teams were done with their analyzes by late fall, and rather than rush into these evaluations without due diligence, we decided to share these decisions as we made them so people would have the information. soon as possible.”
Jassy ended the note with a crisp thank you and goodbye to the employees who lost their jobs.
“I want to thank you for the work you have done on behalf of the customers and the company who were ultimately affected by these reductions. It is never easy to say goodbye to our teammates and they will be missed. To those who will continue to be with us, I look forward to partnering with you as we make life easier for customers every day and relentlessly invent to do so. Andy.”
Get exclusive access to portfolio managers and their proven investment strategies with real money professional. Start now.
