Amazon’s workforce cuts — the largest in its history — begin Wednesday.
Earlier this month, Amazon CEO Andy Jassy told employees in a blog post that the company was laying off about 18,000 people to cut costs and would be in touch with affected employees on Jan. 18.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said in the Jan. 4 post. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
Amazon declined to comment outside of the blog post.
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The layoffs, which are only a fraction of the company’s 1.5 million global workforce and are part of the company’s ongoing annual operational review, will primarily affect the company’s Amazon Stores division, which manages both the e-commerce business as the company’s physical stores. – and are PXT organizations, which handle human resources and other functions.
Jassy first warned employees in November that layoffs were on the horizon given the uncertain economy and the company’s rapid hiring because of the pandemic.
In the Nov. 17 post, Jassy told employees that Amazon decided to cut some positions in its appliances and books business. He also announced a voluntary discount offer for some employees in his PXT organization.
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As part of its annual review of the company’s operational planning, it looks at each of its activities to see what changes need to be made for the long-term health of the company.
However, Jassy went on to warn that there would be more role reductions in early 2023 as part of this annual planning process.
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Although the company did not disclose a headcount at the time of the announcement in November, the Wall Street Journal reported that it would be 10,000 positions.
The Associated Press contributed to this report.