Amazon CEO Confirms Layoffs Will Surpass 18,000 After Number Leaked By “One Of Our Teammates”

Amazon CEO Andy Jaffee said on Wednesday that more than 18,000 jobs would be eliminated as a result of the company’s recent review, shortly after a report earlier in the day confirmed it. wall street journal Cited The total number of employees affected by the staff reductions that began back in November.

“We generally wait to communicate these results until we can speak to those directly affected. However, because one of our partners leaked this information externally , we decided it was better to share this news first so you can hear the details straight from me,” wrote Jaffee a company blog post This evening. “We intend to communicate with affected employees (or with employee representative bodies where applicable in Europe) from 18 January.”

Back in November, there were voluntary cutbacks proposals for some in the company’s people, experiences and technology (PXT) divisions, as well as cuts in Amazon’s devices and books businesses.

Jaffee wrote today that while the latest cuts this month will affect several additional teams, “the majority of the roles are in our Amazon stores and PXT organizations.”

“The S-Team and I are deeply aware that these roles are difficult for individuals, and we do not make these decisions lightly or underestimate how much they can impact the lives of those affected,” he said. wrote. “We are working to support those who are affected and are providing a package that includes a severance pay, transitional health insurance benefits and external job placement support.”

Read his full blog post below.

The news came on a day an investor raised the notion Amazon founder Jeff Bezos may return to run the companyWhich was around 2022 with many people in the tech sector. Bezos, the company’s founder and previous CEO, handed over the reins to Jesse in July 2021.

Amazon alone lost 50% of its share price after the dot-com bubble burst, the company’s biggest decline since 2000. The losses resulted in a loss of $840 billion in market value in just one year’s time, as well as a loss of $100 billion from Bezos’ personal net worth.

As part of its third-quarter earnings report in October, Amazon provided guidance that its total revenue would grow only 2%-8% in 2023 over the previous year. Earlier this week, it indicated in an SEC filing that it had secured an $8 billion loan for “general corporate purposes” amid uncertainty in the market.

Here’s Jesse’s blog post:

As I shared back in November, as part of our annual planning process for 2023, leaders across the company are working with their teams and looking at the scale of their workforce, the investments they’re making in the future want to do, and prioritizing what matters most to customers. and the long-term health of our businesses. This year’s review has been more difficult given the uncertain economy and the rapid hiring we’ve seen over the past several years. In November, we made the difficult decision to eliminate a number of positions in our Devices and Books businesses, and also announced the offer of voluntary reductions to certain employees in our People, Experience and Technology (PXT) organization. I also shared that we have not completed our annual planning process and I expect further role reductions in early 2023.

Today, I wanted to share the results of these further reviews, which lead to the difficult decision to eliminate additional roles. Between the cuts made in November and the cuts shared today, we plan to eliminate just over 18,000 roles. Several teams are affected; However, the majority of roles are in our Amazon Store and PXT organizations.

The S-Team and I are deeply aware that eliminating these roles is difficult for people, and we do not take these decisions lightly or underestimate how much they can impact the lives of those affected. We are working to support those who are affected and are providing a package that includes a severance pay, transitional health insurance benefits and external job placement support.

We generally wait to communicate about these results until we can speak to those who are directly affected. However, because one of our partners leaked this information externally, we decided it would be best to share this news first so that you can hear the details directly from me. We intend to communicate with affected employees (or with employee representative bodies where applicable in Europe) from 18 January.

Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure; However, I am also optimistic that we will be inventive, resourceful, and unhappy in a time when we are not hiring en masse and eliminating certain roles. Long-standing companies go through different phases. They are not in heavy people expansion mode every year. We often talk about our leadership principle of invention and simplification in the context of creating new products and features. That’s going to continue to be pretty much all of the businesses that we’re following. But, we sometimes overlook the importance of the critical invention, problem-solving, and simplification that goes into figuring out what matters most to customers (and the business), where we best focus our resources and time. spend, find a way to do more. to customers at a lower cost (passing savings to customers in the process). Both of these types of invention and simplification really matter.

To those affected by these cuts, I want you to know how grateful I am for your contributions to Amazon and the work you do on behalf of customers. You have made a meaningful difference in the lives of many customers. For those who will continue the journey with us, I look forward to partnering with you to make customers’ lives better and easier every day, and in our constant quest to do just that.

Andy