Amazon another 9,000 layoffs?
Brief
- Amazon deepens tech-sector gloom with another 9,000 layoffs
- Amazon.com Inc (AMZN.O) on Monday said it would axe another 9,000 roles, piling on to a wave of layoffs that has swept the technology sector as an uncertain economy forces companies to get leaner.
- In a remarkable turn for a company that has long touted its job creation, Amazon will have eliminated 27,000 positions in recent months, or 9% of its roughly 300,000-strong corporate workforce.
Amazon another 9,000 layoffs?
Exciting new changes are happening at Amazon.com Inc (AMZN.O)! In an effort to streamline their operations and stay lean in the face of economic uncertainty, the company has announced plans to axe 9,000 roles. This move is part of a broader trend sweeping the technology sector, as companies adjust to the shifting business landscape.
Although it’s surprising news for a company that has traditionally been known for its job creation, this move will help Amazon stay competitive and agile in the current climate. In fact, with these latest cuts, Amazon will have eliminated 27,000 positions in recent months, amounting to 9% of its corporate workforce of roughly 300,000 employees.
The cuts are primarily focused on Amazon’s highly-profitable cloud and advertising divisions, which were once considered untouchable. However, economic concerns have led business customers to scrutinize their spending, and Amazon is responding by making strategic changes to its operations.
Exciting changes are happening at Amazon’s streaming unit, Twitch! As part of the company’s broader efforts to streamline operations and stay competitive, the platform will be laying off over 400 employees. Dan Clancy, who was recently named CEO of Twitch, confirmed the news.
Amazon is working to finalize the list of employees affected by these changes by April. While the decision has caused the company’s stock to fall 1.8%, it’s part of a broader trend in the technology sector as companies like Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) also adjust their workforce in response to economic uncertainty.
Although it’s never easy to see talented people leave a company, these changes will help Amazon and Twitch stay nimble and focused on delivering the best possible products and services to customers. With innovative leaders like Dan Clancy at the helm, we can expect exciting developments from Twitch in the months and years to come.
“I don’t think this means much for other companies, except that all will be more careful before allowing their headcount to balloon in the future,” Wedbush Securities analyst Michael Pachter said.
In what now seems a harbinger, Facebook’s parent Meta Platforms Inc (META.O) said last week it would cut 10,000 jobs this year, kicking off a second round of layoffs for the sector following its elimination of more than 11,000 roles in 2022.
Share of employees laid off in US tech companies
In a note to staff that Amazon posted online, its CEO Andy Jassy said the decision stemmed from an ongoing analysis of priorities and uncertainty about the economy.
“Some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago,” he wrote. “The short answer is that not all of the teams were done with their analyses in the late fall.”
“Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”
Amazon last month said operating profit may continue to slump in the current quarter, hit by the financial impact of consumers and cloud customers clamping down on spending.
The Athena Coalition, a labor and activist group that is critical of Amazon, said in a statement: “None of these layoffs have to happen. Jassy is choosing to make them happen to pad Amazon’s bottom line.”
The company has scaled back or shut down entire services like its virtual primary care offering for employers in recent months.
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