Amazon’s CEO Andy Jassy announced plans to cut 9,000 jobs over the next few weeks in a company memo published on March 20.
According to the memo, the most impacted company divisions will be AWS, PXT, Advertising, and Twitch.
- In Nov. 2022, Amazon announced a previous round of layoffs that affected 18,000 workers, mainly those in the company’s Devices and Books businesses, PXT, and retail operations.
- While AWS presents a lucrative business for Amazon, it is still not immune to the effects of the current economic downturn. The company’s growth rate slowed to 20% during Q4 2022, compared to a 27.5% growth rate for Q3 2022 and a 33% growth rate for Q2 2022.
- For those
who may question why the company waited to announce additional
workforce reductions, Jassy asserts that the company’s teams had not
completed their analyses as of late fall, stating that “rather than rush
through these assessments without the appropriate diligence, we chose
to share these decisions as we’ve made them, so people had the
information as soon as possible.”
