NEW YORK — Amazon plans to cut another 9,000 jobs in the next few weeks, CEO Andy Jassi said in a memo to staff on Monday.
NOTE. The video in the media player is taken from the previous report.
The job cuts will be the second-largest round of layoffs in the company’s history, adding to the 18,000 employees the tech giant said it would lay off in January. However, during the pandemic, the company’s workforce doubled in the midst of a hiring surge across virtually the entire tech sector.
Tech companies have announced tens of thousands of job cuts this year.
MORE: Amazon layoffs: Company to lay off over 18,000 employees
In a memo, Yassy said the second phase of the company’s annual planning process, completed this month, resulted in additional job cuts. He said that Amazon will still be hiring in some strategic areas.
“Some may ask why we didn’t announce these cuts from the ones we announced a couple of months ago. The short answer is that not all teams completed their analyzes in the late fall; and instead of rushing through these assessments without due diligence, we decided to share these decisions as we made them so that people would be informed as soon as possible,” Yassi said.
The job cuts announced on Monday will hurt the company’s profitable areas, including its AWS cloud computing division and its growing advertising business. Twitch, the gaming platform owned by Amazon, will also face layoffs, as will the Amazon PXT organizations that handle human resources and other functions.
Previous layoffs also affected PXT, the company’s store division that covers its e-commerce business, as well as the company’s brick-and-mortar stores like Amazon Fresh and Amazon Go, and other departments like the one that runs the Alexa virtual assistant. .
Earlier this month, the company said it would suspend construction on its northern Virginia headquarters building, though the first phase of that project will open this June with 8,000 employees.
Like other tech companies, including Facebook parent Meta and Google parent Alphabet, Amazon ramped up recruitment during the pandemic to meet demand from Americans who have been increasingly shopping online to protect themselves from the virus.
Amazon’s warehouse and office workforce doubled to over 1.6 million in about two years. But demand slowed as the effects of the pandemic eased. Last year, the company began to suspend or cancel its plans to expand its warehouse space.
Amid growing worries about a potential recession, Amazon closed a subsidiary that had been selling fabrics for nearly 30 years in the past few months and closed its Amazon Care hybrid virtual home care service, among other cost-cutting moves.
Yassi said on Monday that given the uncertainty in the economy and “the uncertainty that exists in the near future”, the company decided to act more rationally.
He said the teams that will be affected by the latest round of layoffs have not yet made a final decision on which roles will be eliminated. The company plans to make these decisions by mid-to-late April and notify those who will be laid off.