Amazon to chop 18,000 jobs, CEO says

(NEXSTAR) – Amazon has turn into the newest U.S. know-how firm to announce main job cuts after hiring “quickly during the last a number of years” within the face of the COVID pandemic.

In a message shared with staff Wednesday, CEO Andy Jassy confirmed Amazon plans to “get rid of simply over 18,000 roles.” A number of areas of the enterprise shall be impacted, he famous, however most cuts will occur at Amazon Shops, together with Amazon Recent and Amazon Go, and in its Individuals, Expertise, and Know-how group.

It’s the most important set of layoffs within the Seattle-based firm’s historical past, though only a fraction of its 1.5 million international workforce.

“[We] are deeply conscious that these position eliminations are tough for folks, and we don’t take these selections evenly or underestimate how a lot they may have an effect on the lives of those that are impacted,” he wrote. “We’re working to help those that are affected and are offering packages that embody a separation cost, transitional medical insurance advantages, and exterior job placement help.”

In response to Jassy, the announcement wasn’t anticipated to be launched this early however was completed so after an Amazon teammate reportedly leaked the data. Amazon staff impacted by these job cuts shall be knowledgeable as early as January 18.

“Amazon has weathered unsure and tough economies up to now, and we are going to proceed to take action,” Jassy mentioned. “These adjustments will assist us pursue our long-term alternatives with a stronger value construction.”

In November, Jassy informed workers that layoffs have been coming as a result of financial panorama and the corporate’s fast hiring within the final a number of years. Wednesday’s announcement included earlier job cuts that had not been numbered. The corporate had additionally provided voluntary buyouts and has been chopping prices in different areas of its sprawling enterprise.

Enterprise software program maker Salesforce additionally introduced job cuts Wednesday. The corporate plans to put off about 8,000 staff, or 10% of its workforce.

The Related Press contributed to this report.