Amazon Expands Layoffs to 18,000 Employees Amid Tech Downturn
Amazon expands its previously announced workforce reductions to over 18,000 employees, primarily impacting its retail and human resources divisions. The announcement follows a similar move by Salesforce and contributes to a massive wave of tech industry cutbacks.
Amazon expands its previously announced workforce reductions to over 18,000 employees, impacting divisions like its People, Experience, and Technology (PXT) and Amazon Stores businesses. While this number seems massive, it represents only 1.2% of the e-commerce giant's 1.5 million global headcount. CEO Andy Jassy confirms that these cuts build upon earlier layoffs in the Devices and Books divisions.
This move follows Salesforce's announcement that it is cutting 10% of its own staff and contributes to a broader trend of tech companies scaling back to counter economic headwinds. Tracking data shows that the tech sector eliminates more than 150,000 positions in 2022 alone, highlighting the widespread nature of these financial adjustments across the industry.
Amazon makes this announcement earlier than planned due to an internal leak to the Wall Street Journal. Because the company has yet to inform the impacted employees directly, it delays the release of specific severance details until it notifies affected workers starting January 18. Jassy promises that the company will provide separation payments, transitional health insurance, and external job placement support.