Amazon Launches Historic 10,000-Person Layoff Amid Economic Downturn
Amazon initiates its largest workforce reduction in nearly 30 years, giving affected corporate employees two months to find new internal roles or take severance. The sweeping cuts impact the devices, retail, and human resources divisions as CEO Andy Jassy tightens company spending.
Amazon begins the process of laying off approximately 10,000 corporate employees, marking the largest workforce reduction in the e-commerce giant's nearly 30-year history. Managers inform affected staff that they have two months to secure a different position within the company or accept a severance package. Numerous employees confirm their status on professional networking sites like LinkedIn.
The job cuts impact several key departments, including the devices division, retail, human resources, and the Luna cloud gaming service. A company spokesperson attributes the reductions to the current macro-economic environment combined with several years of rapid hiring. The spokesperson emphasizes that leaders regularly review financial performance and look for opportunities to optimize costs during their annual operating plan review.
Despite the sweeping nature of the cuts, Amazon reportedly fails to send a company-wide notification to address the size and scope of the situation, leading to frustration among the workforce. The layoffs follow weeks of rumors regarding accelerating belt-tightening efforts led by CEO Andy Jassy. Even as it eliminates roles, the company insists it remains excited about the future of its larger businesses and newer initiatives like Prime Video, Alexa, and Healthcare.