Amazon layoff: New job cuts focus on AWS and HR department

Amazon earlier announced new round of layoffs that are expected to affect 9,000 employees. The company has already fired over the 18,000 employees in layoffs announced in last November and in January. Layoffs are part of Amazon's plan to cut costs amid falling revenue.

Team Newsable

First Published Apr 27, 2023, 6:05 PM IST | Last Updated Apr 27, 2023, 6:05 PM IST

Due to concerns about a recession, Amazon began cutting costs by freezing hiring, stopping some projects, and slowing warehouse expansion. CEO Andy Jassey in his note last month said that given the uncertain economy and the "uncertainty that exists in the near future,"Amazon has chosen to be more streamlined.

The layoffs come as Amazon Web Services (AWS), the company's most profitable division, experiences slowing sales growth. The announcement of the layoffs states that AWS employees would be affected worldwide, starting with those in the US, Canada, and Costa Rica. CEO Adam Selipsky and Human Resources Director Beth Galetti informed affected workers of the layoffs early on Wednesday.

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"It is a tough day across our organisation" AWS chief Adam Selipsky said in an internal memo. "We are making a lot of effort to show respect to everyone who is touched and to offer a variety of tools and touchpoints to help with this transition," he added.

He said, "This also includes packages that include a severance payout, transitional health insurance coverage, and external job placement help."

In March, CEO Andy Jassy announced 9,000 job cuts, in addition to the 18,000 eliminations already announced last November and in January. As part of this strategy, Amazon downsized its personnel on April 18 by laying off a number of workers from its advertising division.

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Amazon started reducing expenses by suspending some initiatives, pausing recruiting, and limiting warehouse growth due to worries of a recession. Amazon has opted to be more streamlined in light of the uncertain economy and the "uncertainty that exists in the near future," according to CEO Andy Jassey's statement from last month.

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