In a memo to workers on Thursday, Andy Jassy wrote that Amazon would lay off employees.
We have had to make some very tough calls over the past couple of years, particularly during the heart, but this is the most difficult decision we have had to make. "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 who will be impacted."
The company told employees in some divisions that they would be let go. Some employees have been offered the option to take a voluntary buyout in order to trim their numbers.
A person familiar with the matter previously told CNBC that Amazon wants to lay off about 10,000 employees. As Amazon reckons with a worsening economy, slowing growth in some divisions and after its headcount ballooned during the Pandemic, it's making cuts.
Business leaders are still determining the need for further job cuts as the company is still in the middle of its annual operating planning process.
Jassy wrote that those decisions would be shared with impacted employees. There will be reductions in our Stores and PXT organizations, but each leader will communicate to their teams when we have the details nailed down.
Amazon instituted a hiring freeze in order to slow its growth. The company is still looking for warehouse workers to work during the holiday season.
The tech sector is feeling the effects of job cuts. Meta, the parent company of Facebook, laid off 13% of its staff.
The full memo from Jassy can be found here.
Two weeks ago, Beth shared that S-team and I stopped new hires. I want to talk about role eliminations today. In the middle of our annual operating planning review, we look at each of our businesses and make decisions about what we should change The leaders of the company are looking at their workforce levels, investments they want to make in the future, and priorities when it comes to the long-term health of their businesses. The economy remains in a challenging spot and we have hired rapidly in the last few years, making this year's review more difficult.
Yesterday, we communicated the difficult decision to eliminate a number of positions across our Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology organization. As leaders continue to make adjustments, there will be more role reductions. The decisions will be shared with employees and organizations early in the future. We know that there will be reductions in our Stores and PXT organizations, but we don't know how many other roles will be impacted. We will communicate directly with impacted employees before making announcements.
I have been in this role for about a year and a half and this is the most difficult decision we have had to make. 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 people with ambitions and responsibilities whose lives will be impacted We are working to support those who are affected and trying to help them find new roles on teams that have a need, as well as offering packages that include a separation payment, transitional health insurance benefits, and external job placement support.
Amazon has weathered uncertainty in the past and will continue to do so. We have big opportunities in our established businesses like Stores and Advertising, but also in our newer initiatives that we have been working on for a long time. If we do what Amazon does best, we should be very optimistic about Amazon's future. I'm aware that I am.
As we gear up to deliver during the busy shopping season, I would like to thank each of you for your continued contributions.
Thank you Andy.
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