E-commerce giant Amazon is reportedly planning to cut more than 18,000 jobs.
A number of divisions will be affected, including Amazon Stores and its human resources department, according to a statement from CEO Andy Jassy.
In November, it was initially reported that the company is targeting 10,000 job cuts, starting with the firm’s devices division. The Amazon chief said that layoffs at the e-commerce giant would continue into early 2023.
“Leaders across the company have been working with their teams and looking at their workforce levels, investments they want to make in the future, and prioritising what matters most to customers and the long-term health of our businesses,” Jassy said in a statement.
Affected workers will be informed from January 18. The cuts amount to around six percent of Amazon’s roughly 300,000-person corporate workforce.
According to Jassy’s statement, this year’s review has been more difficult given the uncertain economy and noted that the firm had hired rapidly over the last several years.
“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,” he said.
The Amazon boss did not specify where affected employees were located, but he said the firm would communicate with organisations that represent employees “where applicable in Europe”.
Last year, Amazon also introduced a hiring freeze and halted some of its warehouse expansions, warning it had over-hired during the pandemic. It has also taken steps to shut some parts of its business and plans to cancel several projects.
Over the past couple of years, Amazon and other tech firms significantly ramped up hiring as consumer habits shift toward digital and e-commerce due to the pandemic. Now, with many people returning to pre-pandemic habits and sluggish macroeconomic conditions, tech companies are trimming staff and laying off thousands of workers.
Facebook-parent Meta also recently announced 11,000 job cuts, the largest in the firm’s history. Twitter also axed thousands of jobs after Elon Musk bought the company for $44 billion.
