Amazon to lay off over 18,000 workers, CEO cites 'uncertain economy'

After knocking off 10,000 employees off its rolls in November last year, Amazon is preparing to lay off over 18,000 by the third week of January, and has cited the “uncertain economy” responsible for the tough decision.

According to Amazon CEO Andy Jassy, a bulk of the layoffs will be effected in the Amazon Stores and PXT organisations.

“Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles,” Jassy said in a statement which was shared with Amazon employees on Thursday (January 5).

Our CEO Andy Jassy just shared a message to Amazon employees. https://t.co/cw5Dl6WY84

— Amazon News (@amazonnews) January 5, 2023

Jassy ascribed the decision to “eliminate additional roles” to uncertain economy and “that we’ve hired rapidly over the last several years.”

Also read: Amazon employees live in fear, look for clues as co on layoff spree

The Amazon chief said those who will be laid off will be offered a severance package including a separation payment, transitional health insurance benefits and external job placement support.

“S-team and I are deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted,” he wrote.

Also read: Amazon may lay off 20,000, managers told to note performance issues

Jassy said some of the layoffs would be in Europe and the said employees would be informed from January 18.

“To those impacted by these reductions, I want you to know how grateful I am for your contributions to Amazon, and the work you have done on behalf of customers. You have made a meaningful difference in a lot of customers’ lives,” he added.

Also read: How Elon Musk’s ruthless layoffs, summary firings paint him as an employer

Amazon reportedly has 350,000 corporate employees across the world and the latest job cut would be the biggest for any tech company amid the current crisis ailing the world economy.