Amazon to cut more than 18,000 jobs

Amazon announced plans Wednesday to cut more than 18,000 jobs, a larger number than the company had initially predicted.

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In a memo to employees, Amazon CEO Andy Jassy said that the decision to eliminate the jobs was made as part of a review during the annual planning process for 2023. “This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” Jassy said in the memo.

Jassy said that while the jobs cut in November were largely in the devices and books businesses, the latest cuts will be in Amazon stores and its people, experience and technology organization. The cuts will not impact hourly warehouse workers, NPR reported.

In November, the company had said it planned to lay off approximately 10,000 employees, according to The New York Times.

“S-team and I are deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted,” Jassy said in the memo. “We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support.”

The 18,000 jobs account for a little more than 1% of the company’s 1.5 million employees, according to NPR.

Jassy said the layoffs would begin on Jan. 18.

“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” Jassy said in the memo. “However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me.”

Amazon’s stock fell approximately 50% last year, and disappointed Wall Street with a holiday season forecast that failed to meet expectations, CNN reported.

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