Amazon exec says job cuts necessary to slash costs • The Register

Amazon sent an email to employees on Wednesday, explaining what is said to be the biggest layoff in the history of the giant company.

Two weeks ago, CEO Andy Jassy published a blog post declaring his internet empire’s intention to cut more than 18,000 jobs, including job cuts announced in November. He didn’t give specific reasons other than citing an “uncertain economy” and rapid hiring in recent years. Like other organizations, Amazon continued to hire heavily during the pandemic.

Evidence of job cuts appeared in Washington State’s Worker Adjustment and Retraining Notice (WARN) system on Wednesday, as 2,300 workers at Amazon, home of the e-commerce giant, will be laid off effective March 3, 2023. be done.

That same day, Doug Herrington, Head of Retail, and Beth Galetti, Head of Human Resources, sent an internal email message to inform staff about the process.

According to a memo obtained by CNBC, most of the layoffs occurred in the Amazon Stores business and the company’s People Experience & Technology (PXT) organization. Those affected should have been notified by the end of Wednesday, January 18.

Herrington said hiring done “during COVID” no longer fits Amazon’s cost structure, citing role reductions as a necessary step to keep prices low.

Here Amazon hits $127 billion in sales in the three months ended Sept. 30, up 15% year-over-year, while profits fall 9% to $2.9 billion in the quarter alone. point out that Year-end results are coming soon.

“It is with a heavy heart that we say goodbye to many of our talented colleagues, but they are an important part of our broader effort to reduce service delivery costs, and we are grateful for the wide selection, low prices and fast shipping our customers offer. You can keep investing.Love.”

Notices will be sent to affected workers in the United States, Canada and Costa Rica, while redundant workers in China will receive notices following Chinese New Year on Jan. 22, Galletti said.

When asked for comment, an Amazon spokesperson pointed to Jassy’s previously cited remarks on the matter from January 4.

An ax wields the world of technology

Now that the holiday season is over and layoffs seem a little more ruthless than pre-festive layoffs, it’s time for staff cutbacks. Microsoft announced Wednesday plans to cut 10,000 jobs.

Salesforce on January 4th said [PDF] 10% of the workforce, or about 8,000 jobs, would be lost. That same day, Twitter, which has been resolutely draining staff since Elon Musk took office, cut his 257 positions in Seattle, according to his WARN system in Washington state. And last week, on Jan. 13, Meta said he cut 419 positions in Seattle and 307 in nearby Bellevue, Washington, as the company said in November.

On Thursday, January 19, WeWork reported its fourth quarter 2022 earnings, with rumors circulating that Office Rental Biz will cut 300 jobs. Sophos (~450), Teladoc Health (~300), 8×8 (~155), Benevity (~137), and a few others.

These job cuts have yet to translate into a surge in U.S. unemployment insurance claims.According to the Labor Department, the week ending January 14 [PDF], preliminary figures show 190,000 unemployment insurance claims, down 15,000 from the previous week’s uncorrected level of 205,000. The four-week moving average was 206,000, down 6,500 from the previous week’s unadjusted average of 212,500. ®

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