Amazon to cut 18,000 jobs as layoffs expand in tech sector

Jan 5 (Reuters) – Inc’s (AMZN.O) layoffs include more than 18,000 job cuts as part of previously announced job cuts, Andy Jassy said. The CEO said in a memo to a spokesman on Wednesday.

The layoff decisions, which Amazon will notify from January 18, will have a major impact on the company’s e-commerce and human resources organization, he said.

The cuts represent 6% of Amazon’s roughly 300,000 corporate employees, and the retailer, which recently doubled the base salary cap, is making a quick shift to compete more aggressively for talent. represents.

It also shows that layoffs continue to rock the tech sector. Amazon’s layoffs now exceed the 11,000 job cuts Facebook parent company Meta Platforms (META.O) announced last year, and demand has grown from essential businesses moving goods during pandemic lockdowns. It highlights the retailer’s fall into a company that was overbuilt to fit.

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The company’s stock fell more than 1% on Thursday, half what it was a year ago.

Amazon has more than 1.5 million employees, including warehouse staff, making it the second-largest private employer in the U.S. after Walmart (WMT.N). Jassy indicated that the cuts would extend to Europe.

“Annual planning is more difficult given the uncertain economy, which we have adopted rapidly in the past few years,” Jassy said in a memo.

This reduction will bring Amazon’s corporate workforce closer to September 2021 levels.

The company has been bracing for months for slowing growth as skyrocketing inflation forced businesses and consumers to cut back on spending. Overall, U.S. retailers saw little growth in online sales this holiday season, with recent consumer prices up about 7% year-over-year.

Amazon began laying off staff in its devices division in November, but a source told Reuters at the time it was targeting about 10,000 job cuts.

According to tracking site, the tech industry will cut more than 150,000 workers in 2022, and that number continues to grow. On Wednesday, Salesforce Inc (CRM.N) also revealed plans to cut about 10% of its roughly 8,000 employees as of Oct. 31.

Jassy’s memo follows a Wall Street Journal report that the cuts will eliminate more than 17,000 jobs. He said Amazon chose to disclose the news before notifying staff affected by the breach.

Amazon still has to file specific legal notices for mass layoffs and will pay severance pay.

Jassy said:

A spokeswoman for the London-based trade union GMB said it was aware of the cuts, but its members would not be affected.

Union members working at an Amazon warehouse in Coventry, central England, are planning a strike on January 25 over wage negotiations with the e-commerce giant.

Douglas Harper, a spokesperson for Spain’s largest trade union CCOO, criticized what he said as a complete lack of information from the company.

“I don’t know how this will affect us in Spain,” Harper told Reuters.

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read more:

FACTBOX-Tech companies lead U.S. job cuts

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Reported by Jeffrey Dastin, Palo Alto, Uday Sampath, Bangalore, Muvija M, London, David Latona, Madrid, and Tassilo Hummel, Paris. Edited by Kim Coghill, Jan Harvey and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.

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