Amazon cuts 9,000 more jobs
This is the second time in 2023 that Amazon has announced a restructuring plan. As of January, the giant had cut 18,000 jobs.
Retail and cloud computing giant Amazon will cut 9,000 more jobs over the next few weeks.
This is the second time in a few months that the giant has announced job cuts. In January, Amazon said it would cut just over 18,000 positions.
President and CEO Andy Jassy wrote in a statement posted on the company's website that Amazon had added a substantial number of employees in recent years, but that prevailing economic uncertainty is forcing the Seattle-based company to cut its costs and workforce.
“It's a tough call, but it's best for the company in the long run.
— Andy Jassy, President and CEO of Amazon
This new restructuring will target cloud services (Amazon Web Services, AWS) , the advertising sales service and live streaming platform Twitch.
The layoffs announced in January targeted the e-commerce teams and human resources, among others.
Some may wonder why we did not announce these job cuts along with those we announced a few months ago, he added. The short answer is that not all teams completed their analyzes by late fall; and rather than rush into these assessments without the proper due diligence, we've chosen to share these decisions as we made them so people have the information as soon as possible.
Last month, Amazon said its operating profit could continue to decline in the current quarter, as consumer spending slows.
Between the end of 2019 and At the end of 2022, Amazon recruited, net, 700,000 people, and thus increased the number of its employees by 83%.
The end of the confinements and the gradual return to the office slowed the trajectory of the group, which had experienced insolent growth with the COVID-19 pandemic and the acceleration of online commerce.
To this was added the cycle of monetary tightening by the American central bank (Fed), which began in the spring of 2022, which caused interest rates to rise sharply, to which the technology sector is particularly sensitive due to significant financing needs.
Since the start of 2023, the layoffs.fyi portal, which tracks restructuring in the technology sector, suggests that 503 companies have cut slightly more 139,000 jobs.
Meta, parent company of Facebook and Instagram, for example, announced the loss of 10,000 jobs since the start of 2023, which followed a restructuring announced last November, which eliminated 11,000 jobs.
With information s from Reuters, CNN, and Agence France-Presse