Amazon CEO Andy Jassy stated that this was a difficult decision but necessary for the company’s long-term success.
Amazon has announced a second round of layoffs, resulting in approximately 9,000 job cuts across AWS, People, Experience, and Technology (PXT), Advertising, and Twitch.
CEO Andy Jassy stated in a memo to employees that while it was a difficult decision, it was necessary for the company’s long-term success.
This move comes amid several rounds layoffs in tech companies, including Meta’s announcement of 10,000 job cuts. Amazon’s decision comes only two months after the company announced the layoff of 18,000 workers.
Jassy first announced a voluntary reduction offer to some PXT employees in November 2022, with more layoffs expected in 2023. He announced eliminating 18,000 jobs in January, primarily in Amazon Stores and PXT.
According to Jassy’s memo, the newly announced role reductions were not combined with the previous announcement because not all teams had completed their analyses at the time.
He also stated that the impacted teams still need to complete final decisions on which roles will be affected and that the company expects to achieve this by mid-to-late April.
Employees who are laid off will receive assistance from Amazon, including a separation payment, transitional health insurance benefits, and external job placement assistance. The company paid out $640 million in severance packages for layoffs in December and January.