Possible expansion of Amazon's layoffs. In a note to employees, Amazon CEO Andy Jassy said that the business would be eliminating another 9,000 positions in the "coming few weeks." The statement states that Twitch, advertising, and cloud computing units like Amazon Web Services would be largely impacted by the cuts. The CEO also cautions that impacted employees won't be informed by Amazon until the final cuts have been made, which is unlikely to happen until mid- to late April.
According to Jassy, the broader layoffs come after a "second phase" of operational planning aimed at cutting expenses. In order to share information "as quickly as feasible," the firm wants to reveal choices early because some teams weren't prepared for the initial wave of layoff notifications in November. The online shop is guaranteeing job placement assistance, transitional health insurance, and severance money.
In response to a CNBC story, Amazon verified the memo's existence to Engadget. Jassy continues to blame the budget cuts on the "uncertain economy" and continuing concerns about performance in the near future. According to the CEO, the company wants to be "more streamlined" while still having the funds to spend in offering customers a better experience.
In the fall of last year, there were rumours the corporation would fire 10,000 workers, but in January it revealed it would fire 18,000 workers. The majority of the cuts at the time were made in retail and hiring. Amazon closed down a few of its physical storefronts and cut down a few of its business divisions last year. At the height of the COVID-19 pandemic, the business gained from the move to internet buying, but it had trouble when consumers adopted their pre-pandemic routines.
This year, several major internet companies have either announced layoffs or are contemplating larger cuts than Amazon. After eliminating 11,000 posts in the autumn, Meta said this month that it will lay off an additional 10,000 employees. Amazon, though, is currently slashing more drastically than many other companies. Furthermore noteworthy is the inclusion of Twitch in the layoffs. The livestreaming service was quite successful in the early stages of the epidemic, but according to Streamlabs and Stream Hatchet, viewership has been steadily declining since spring 2021. Simply said, Twitch isn't as popular as it was when people were cooped up at home.
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