Amazon, the global e-commerce and technology giant, announced today that it will be eliminating approximately 9,000 positions in the next few weeks. The move comes after the company’s recent decision to cut 18,000 roles in January, as it seeks to streamline its operations amid economic uncertainty. The latest round of cuts will impact mostly Amazon Web Services (AWS), People Experience and Technology (PXT), Advertising, and Twitch.
In a letter shared with Amazon employees, CEO Andy Jassy explained that the decision to eliminate the positions was part of the company’s annual planning process. With a focus on prioritizing investments for the future, Amazon sought to create a leaner operation while still investing robustly in key long-term customer experiences.
The annual planning process led to an evaluation of customer priorities, resulting in reprioritization decisions that included role reductions, moving people from one initiative to another, and creating new openings where the company lacked the necessary skills among its existing team members.
Jassy pointed out that the company had added a significant amount of headcount in recent years due to the growth of its businesses and the overall economy. However, with the ongoing economic uncertainty, Amazon has opted for a more streamlined approach to its costs and headcount.
The main goal of this year’s planning was to create a leaner organization while enabling Amazon to continue investing in key long-term customer experiences that can meaningfully improve customers’ lives and the company as a whole.
The decision to announce the role reductions in two separate instances was made to ensure that teams could complete their analyses with appropriate diligence. The latest round of 9,000 reductions was shared as soon as possible, and the company aims to finalize decisions on the impacted roles by mid to late April.
Amazon has pledged to support employees who will be let go, offering separation packages that include a separation payment, transitional health insurance benefits, and external job placement support.
Despite the significant reductions in headcount, CEO Andy Jassy remains optimistic about the future and the numerous opportunities that lie ahead for Amazon. The company plans to continue focusing on its largest businesses, Amazon Stores and AWS, as well as investing in newer customer experiences and businesses. As Amazon bids farewell to those affected by the role reductions, the company remains committed to its goal of making life easier for customers through relentless innovation and streamlined operations.