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Amazon CEO Andy Jassy Says Layoffs Will Extend Into 2023

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Amazon CEO Andy Jassy Says Layoffs Will Extend Into 2023

(CTN NEWS) – Amazon CEO Andy Jassy announced in a memo to staff that layoffs would continue into the new year on Thursday after confirming that they had started on Wednesday.

“I’ve been in this position for almost a year and a half now, and without question, this is the most difficult choice we’ve made in that time (and, during the past couple of years, particularly at the core of the pandemic.

we’ve had to make some extremely terrible choices),” Jassy wrote.

“It’s not lost on me or any of the decision-makers that these aren’t just roles we’re eliminating, but rather, people with feelings, ambitions, and obligations whose lives will be impacted,” the leader said.

This week, the corporation started alerting workers in some areas, such as devices and services, that they will be laid off.

In addition to the layoffs, it has given some employees a choice to accept a voluntary buyout as a way to reduce headcount.

According to a person familiar with the situation who spoke to CNBC previously, Amazon plans to fire around 10,000 people, though the exact number of those affected is still uncertain.

Amazon is making the cuts as it struggles to deal with a deteriorating economy, which has halted growth in several areas after its staff grew dramatically during the pandemic.

As the company is still going through its annual operating planning process and business leaders are still determining the need for additional job cuts, Jassy said the layoffs would continue into 2023.

Early in 2023, according to Jassy, “such decisions will be communicated to impacted employees and organizations.”

“We haven’t determined exactly how many other roles will be impacted yet, but each leader will speak to their relevant teams when we have the specifics worked out (we know there will be cutbacks in our Stores and PXT groups).”

As part of its efforts to restrict personnel growth, Amazon has already instituted a recruiting freeze for its corporate workforce.

The business is still hiring warehouse workers to prepare for the holiday rush. After years of unchecked development, job layoffs severely impact the tech industry.

Last week, Facebook parent company Meta lost 13% of its workforce; Twitter, Shopify, Salesforce, and Stripe have reported more layoffs.

The Full Memo From Jassy is Below:

Amazon CEO Andy Jassy Says Layoffs Will Extend Into 2023

Beth revealed two weeks ago that S-team and I had decided to halt new incremental recruits for our corporate employees. I want to discuss role eliminations in this article.

We are currently conducting our annual operations planning review, during which we evaluate each of our businesses and decide what, if anything, needs to be changed.

Leaders from across the organization are collaborating with their teams to assess the size of their workforces, plan future investments, and prioritize our customers’ needs and our companies’ long-term viability.

The fact that the economy is still struggling and we have been hiring quickly over the past few years makes this year’s review harder.

Yesterday, we announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization and the difficult decision to eliminate several positions across our Devices and Books businesses.

As leaders continue to make adjustments, more role reductions will occur as our yearly planning process continues into the following year.

Early in 2023, those decisions will be communicated to the companies and employees who will be impacted.

We don’t yet know how many more roles will be affected (although we know that there will be cutbacks in our Stores and PXT organizations), but each leader will let their relevant teams know as soon as we know the specifics.

And, as has been the case this week, we will give direct communication with affected employees priority over internal or wide public pronouncements.

Since I’ve been in this position for about a year and a half, this is, without a doubt, the hardest choice we’ve had to make.

Over the past few years, especially during the epidemic’s peak, we’ve had to make some extremely difficult choices.

We are not just eliminating roles but also people with feelings, goals, and responsibilities whose lives will be touched is not lost on me or any of the leaders who make these decisions.

When that isn’t possible, we offer packages including separation payment, transitional health insurance coverage, and outside job placement assistance.

We are working to support affected people and trying to help them find new employment on teams that have a need.

Amazon has already survived the turbulence and challenging economies, and we will do so.

Both our more established companies, including Stores, Advertising, and AWS, as well as our more recent initiatives, which we have been working on for several years and are confident in pursuing, present us with significant prospects in the future (e.g. Prime Video, Alexa, Kuiper, Zoox, and Healthcare).

The secret will be to continue doing what Amazon does best: obsessing about customers and continuously inventing on their behalf. If we can manage this, we can all be quite enthusiastic about the future of Amazon. Indeed, I am.

I want to express my gratitude to each of you for your ongoing support as we navigate this difficult period and prepare to serve customers during the busy holiday shopping season.

Thanks, Andy

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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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