Amazon will cut 9,000 jobs in its global business, the second major job cuts at the online retailer this year.
The company said the cuts would fall primarily on its Twitch cloud services, advertising and live streaming units. They come more than two months after Amazon announced it had expanded layoff plans to affect more than 18,000 workers. In January, it also revealed separate plans to close three warehouses and seven delivery stations in the UK, which would affect more than 1,200 additional jobs.
Amazon CEO Andy Jassy said in a letter to workers that the company had added a substantial number of staff in recent years, but economic uncertainty forced it to opt for cost and staff cuts. Amazon employs more than 1.5 million people worldwide.
The company has been systematically cutting expenses across the business, announcing earlier this month that it was pausing construction in part of its second headquarters in Alexandria, Virginia. amazon has it has also slowed global expansion of its network of distribution centers, warehouses and other facilities since at least 2022, in some cases scrapping planned projects altogether.
The second round of deep cuts follows a similar move by Meta, the parent company of Facebook, WhatsApp and Instagram. Last week he announced plans to cut another 10,000 jobs this year and also instituted a hiring freeze, having already announced 11,000 job cuts in November last year.
Twitter has also announced multiple rounds of layoffs since its $44bn (£36bn) acquisition of Elon Musk last fall, amid a sharp drop in ad bookings that account for the majority of its revenue. Other tech firms that have announced significant layoffs include Microsoft, Google owner Alphabet, and commercial software company Salesforce.
Tech companies laid off more than 150,000 workers worldwide last year, according to the website. Layoffs.for your information, with another 139,000 layoffs already announced in 2023, including Amazon’s latest announcement. Tech firms have been cutting jobs due to uncertain economic conditions in big markets like the US, as well as adjusting their cost bases after expanding too much during the coronavirus pandemic.
In her letter to workers on Monday, Jassy said: “As we just concluded the second phase of our operational plan last week, I am writing to share that we intend to cut around 9,000 more positions in the coming weeks. mainly on 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. To those who were ultimately affected by these reductions, I want to thank you for the work you have done on behalf of customers and the company.
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“It’s never easy to say goodbye to our teammates, and they will be missed.”
