Amazon's layoffs will extend into 2023, says CEO Andy Jassy
E-commerce giant Amazon began laying off its employees earlier this week. Andy Jassy, the company's CEO, has now announced that job cuts will extend into 2023 as well. The company is yet to disclose how many employees it has let go so far. It reportedly plans to fire around 10,000 employees. This is the first time Jassy has spoken about the job cuts.
Why does this story matter?
Amazon is the latest to feel the frostbite of tech winter that is slowly taking out one bigwig after another. It went on a hiring binge during the pandemic and now is forced to return to pre-pandemic levels. The situation is simply worsened by inflation and the interest hike that followed. Unfortunately, there is no way around this.
Jassy admitted to Amazon being aggressive in hiring
In a memo to employees, Jassy said that Amazon is in the middle of its "annual operating planning review" where it looks at businesses and decides on what needs to be changed. He added that this year's review is "more difficult" because the economy is in a "challenging spot" and the company has been aggressive in its hiring in the last few years.
Some employees were offered voluntary buyout offers
Jassy confirmed that Amazon eliminated several roles in the company's "Devices and Books businesses." The company also offered some employees in the People, Experience, and Technology (PXT) organization voluntary buyout offers. The CEO said that Amazon's annual planning will extend into the next year, meaning there will be more job cuts. The company is yet to decide how many roles will be impacted.
Amazon will help employees find new roles on other teams
Jassy talked about supporting employees whose roles have been eliminated by finding a new role for them on teams that have a need. He said that those who are unable to find an internal alternative will be supported by packages that include "a separation payment, transitional health insurance benefits, and external job placement support."
Most difficult decision made since he became CEO: Jassy
"I've been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we've made during that time," Jassy wrote. "It's not lost on me or any of the leaders who make these decisions that these aren't just roles we're eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted."
