Amazon plans on laying off an additional 9,000 workers, including tech professionals who work in its Amazon Web Services (AWS) and Twitch divisions.
Amazon’s previous layoff round impacted 18,000 employees across a range of teams, including (but not limited to) retail, devices, and recruiting. These latest cuts will affect those Amazon employees who work on everything from gaming to cloud to online advertising.
In a memo to employees, Amazon CEO Andy Jassy framed the cuts as a result of the company’s annual planning process. “As our internal businesses evaluated what customers most care about, they made re-prioritization decisions that sometimes led to role reductions, sometimes led to moving people from one initiative to another, and sometimes led to new openings where we don’t have the right skills match from our existing team members,” he wrote. “This initially led us to eliminate 18,000 positions (which we shared in January); and, as we completed the second phase of our planning this month, it led us to these additional 9,000 role reductions.”
Impacted employees will receive severance, “transitional health insurance benefits,” and external job placement support. “I remain very optimistic about the future and the myriad of opportunities we have, both in our largest businesses, Stores and AWS, and our newer customer experiences and businesses in which we’re investing,” Jassy concluded.
Like many other tech giants, Amazon enjoyed outsized revenue and profits during the pandemic, when businesses and consumers across the country boosted their spending on e-commerce and cloud services. With widespread fears of an imminent economic recession, however, those customers have begun to curtail their spending, impacting these tech companies’ bottom lines. While it has a significant presence in multiple industries, Amazon is just as vulnerable as any other business to the twists and turns of the broader economy.
Other big names in tech—including Meta, Uber, Amazon, Cisco, and Twitter—have also collectively laid off many thousands of workers over the past few months. Whether Amazon has finished its mass layoffs remains to be seen, but like the rest of the tech industry, it will continue to need specialized talent if it wants to hold and grow its market share in critical areas.