Home / News / World /  Job cuts will continue into 2023: Amazon CEO Andy Jassy

Amazon.com Inc. Chief Executive Officer Andy Jassy has made his first comments about the job cuts which began this week. CEO Jassy said the e-commerce giant will be cutting jobs into 2023 as it adjusts to business conditions.

“Leaders across the company are working with their teams and looking at their workforce levels, investments they want to make in the future, and prioritizing what matters most to customers and the long-term health of our businesses," Jassy said in a statement.

“This year’s review is more difficult due to the fact that the economy remains in a challenging spot and we’ve hired rapidly the last several years."

Also Read: Amazon, Meta join ranks of tech companies slashing thousands of jobs

Jassy said people were notified in the company’s devices and books business and that some in Amazon’s “People, Experience and Technology" organization, which includes recruiters and human resources professionals, were offered voluntary buyouts.

According to documents reviewed by Bloomberg, many employees were given 60 days to find new jobs within the company, which would be followed by a severance package based on tenure if they fail to land new roles.

“Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments," he said. “Those decisions will be shared with impacted employees and organizations early in 2023."

Earlier, there were reports that the company plans to wipe out about 10,000 jobs. Jasey in his post said that, “We haven’t concluded yet exactly how many other roles will be impacted (we know that there will be reductions in our Stores and PXT organizations), but each leader will communicate to their respective teams when we have the details nailed down. And, as has been the case this week, we will prioritize communicating directly with impacted employees before making broad public or internal announcements."

Jassy has been trying to reduce expenses amid slowing growth in several areas of Amazon’s business. The company has projected the smallest revenue increase ever for its holiday quarter. In the past few months, Jassy had put in place a hiring freeze on some corporate roles and shut down several experimental and smaller programs.

Amazon is among tech companies like Meta Platforms Inc. and Salesforce Inc. that are eliminating jobs following years of rapid growth. Amazon’s payroll swelled to 1.62 million global full- and part-time employees at the end of March, before dropping to 1.54 million as of Sept. 30.

Also Read: Amazon India likely to layoff few hundred employees: Report

Some workers, posting to company message boards, had been critical of Jassy for remaining silent this week since the job cuts became public and questioned why he hadn’t talked to them about the situation as Meta CEO Mark Zuckerberg did with his employees via a virtual townhall. With scant information from managers, Amazon’s online message boards quickly filled with posts from thousands of employees who swapped insights about layoffs and severance packages.

Also Read: This company will give laid-off Meta, Twitter, Amazon employees $100,000 for a startup idea

For the most part, chats reviewed by Bloomberg showed workers offering condolences and advice to those let go, particularly employees working on sponsored visas. Many complained that it was difficult to concentrate with so many colleagues left in limbo.

Mockery also made its way into the exchanges. Some compared the environment -- with workers desperately trying to determine if they’d be the next person fired -- to the Netflix thriller Squid Game, where cash-strapped people compete for survival in deadly versions of childhood challenges.

“If you didn’t get a notice today, congrats. You have survived Squid Game day 1," stated one post earlier this week reviewed by Bloomberg. The post was met with laughing-face emoji reactions.

(With inputs from Bloomberg)

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