Amazon Begins Biggest Layoffs in Company’s History

Amazon’s workforce reduction – the largest in its history – will 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 as it seeks to cut costs and would begin contacting impacted employees on Jan. 18.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy stated this in the Jan. 4, post. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”

Amazon declined to comment on the blog post. 

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The layoffs, which are just a fraction of its 1.5 million global workforce and part of the company’s ongoing annual operative review, will mostly impact the company’s Amazon Stores division — which encompasses its e-commerce business as well as company’s brick-and-mortar stores — and its PXT organizations, which handle human resources and other functions.

Amazon’s workforce reduction – the largest in its history – will begin Wednesday. (AP Photo/Kathy Willens/File / AP Newsroom).

Jassy alerted employees in November to the possibility of layoffs, given the uncertainty in the economy and the fact the company had hired quickly over the pandemic.

Jassy stated to employees, Nov. 17, that Amazon had made the decision to purchase them. eliminate a number of positions over its devices, books and services businesses. He also announced a voluntary offer of a reduction for certain employees within its PXT organisation.

The packages that are carried on a belt will be scanned and loaded onto the delivery trucks at Amazon Warehouse in Robbinsville Township (New Jersey) on Aug. 1, 2017. (AP Photo/Julio Cortez, File / AP Newsroom)

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As part of the company’s annual operating planning review, It examines each of its businesses to determine what needs to be done to ensure the long-term sustainability of the company.

Jassy warned however that early 2023 would see more job cuts as part of the annual planning process.

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Although the company did not disclose any headcount information at the time of November’s announcement, the Wall Street Journal stated that 10,000 positions would be affected.

This report was compiled by the Associated Press.

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