While he didn’t confirm how many roles are impacted, Andy Jassy said the company cut jobs in its devices and books divisions and that more reductions are planned early next year.
Amazon CEO Andy Jassy has confirmed that mass layoffs are taking place within the company and will continue into 2023.
In a message shared to Amazon employees, Jassy said the company eliminated “a number of positions” in its devices and books divisions on Wednesday (16 November).
Amazon also began a “voluntary reduction offer” for employees in its people, experience and technology (PTX) organisation. The tech giant has not disclosed how many staff have been cut worldwide or how many jobs may be at risk.
Earlier this week, it was reported Amazon plans to cut up to 10,000 staff across its global workforce. On 15 November, the company notified Californian authorities that it would lay off about 260 workers at various facilities in the state, Associated Press reports.
Amazon employs more than 1.5m people globally and about 5,000 people in Ireland. Tánaiste Leo Varadkar said this week that job cuts in Amazon’s Irish operation are not expected.
Jassy said the decision to cut roles comes amid Amazon’s annual operating planning review, where the tech giant examines each of its businesses to prioritise their long-term health.
“This year’s review is more difficult due to the fact that the economy remains in a challenging spot and we’ve hired rapidly the last several years,” Jassy added.
The CEO said this process extends into next year, which means there will be “more role reductions” within Amazon in early 2023.
Jassy said the company has not concluded how many other jobs will be impacted, but confirmed there will be reductions in its stores and PTX organisations.
“As has been the case this week, we will prioritise communicating directly with impacted employees before making broad public or internal announcements,” Jassy said. “I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time.
“It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions and responsibilities whose lives will be impacted.
Jassy said Amazon is working to find affected staff new roles within other teams. In cases where this is not possible, he said the company is offering packages that include “a separation payment, transitional health insurance benefits and external job placement support”.
Mass layoffs across tech
Amazon is one of many tech companies looking to reduce the size of its workforce as the sector reacts to issues in the global economy and a looming recession.
Earlier this week, Irish start-up Wayflyer announced plans to lay off 200 of its staff worldwide, including 70 in Ireland. CEO and co-founder Aidan Corbett said the company had “tried to do too much, too soon”.
It came after Intercom confirmed that it is reducing its global workforce by 13pc, with 39 employees in Ireland at risk of being made redundant.
There are also reports that Intel is planning to cut thousands of jobs worldwide amid a drop in PC sales, according to Bloomberg. The chipmaker employs roughly 4,900 people in Ireland.
Salesforce is making cutbacks, but it is unclear how many of its 2,100 Irish staff may be affected. Sources told the Business Post last week that the US company is expected to cut at least 80 staff from its Dublin office as part of global layoffs.
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