Amazon Expands Layoffs to Over 18,000 Workers Amid Tech Downturn
Amazon expands its previously announced job cuts to impact more than 18,000 employees, primarily affecting its retail and human resources divisions. The early announcement follows an internal leak and adds to the massive wave of tech industry layoffs.
Amazon expands its previously announced workforce reductions to eliminate more than 18,000 roles across the company. This significant expansion impacts the Devices and Books divisions from the initial November announcement, but primarily targets the People, Experience, and Technology (PXT) and Amazon Stores businesses. Despite the large number of affected employees, the cuts represent only 1.2% of Amazon's massive 1.5 million global workforce.
CEO Andy Jassy shares the news earlier than planned due to an internal leak to the Wall Street Journal. The company intends to notify the impacted employees directly starting on January 18. Jassy notes that Amazon usually waits to share such news until it speaks with the affected workers, but the leak forces the company to communicate the details prematurely.
This announcement follows a similar move by Salesforce, which reveals plans to cut over 7,000 jobs just one day prior. These reductions add to a devastating trend across the technology sector, as layoff-tracking data shows tech companies eliminating more than 150,000 positions in 2022 alone to combat ongoing economic headwinds. Amazon promises to provide severance payments, transitional health insurance, and job placement support to the departing employees.