“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” said CEO Andy Jassy.
“However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me,” he added.
The job cuts, which now total approximately 18,000, will predominantly come from the company’s Amazon brick-and-mortar stores, as well as the “People Experience and Technology Solutions” team, referred to as “PXT.”
The e-commerce titan will be providing severance and support for employees going out the door. Jassy says that Amazon will be “providing packages that include a separation payment, transitional health insurance benefits, and external job placement support.”
The blog post blames rapid expansion and the economy for the job cuts, remarking that the company “hired rapidly over the last several years” and is focusing on the long-term health of the business.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy remarked.
The CEO also pointed out that the company sometimes “overlooks” what matters most to customers, which includes how the company spends its time and resources.
“These changes will help us pursue our long-term opportunities with a stronger cost structure,” Jassy said, before diving into the company’s motto and ideological viewpoints.
“I’m also optimistic that we’ll be inventive, resourceful, and scrappy. … We often talk about our leadership principle Invent and Simplify in the context of creating new products and features. There will continue to be plenty of this across all of the businesses we’re pursuing,” the executive explained.
TheBlaze reported in November 2022 that Amazon’s 10,000 job cuts were the largest reduction in company history, accounting for 3% of corporate employees. During the pandemic (i.e., between late 2019 and late 2021), Amazon hired over 800,000 employees to keep up with online orders.