Amazon announced another round of layoffs after shedding 18,000 workers in November. This time the e-commerce giant is going to lay off 9,000 employees.
CNBC reports Amazon, one of the world’s largest e-commerce retailers, is preparing to lay off an additional 9,000 employees in the coming weeks. CEO Andy Jassy announced this in a note to employees on Monday. This round of layoffs comes on top of laying off more than 18,000 workers in November.
Amazon CEO Andy Jassy (Isaac Brekken/AP)
Amazing layoffs to reduce costs in the business. According to Jassy, the company made the decision given the “uncertainty that exists in the near future” as well as the current economic climate. The second phase of the company’s annual budgeting process, known as “OP2” internally, has just been completed.
“The overriding principle of our annual plan this year has been to be leaner while doing so in a way that enables us to continue to invest aggressively in key long-term customer experiences that we believe can meaningfully improve the lives of customers and Amazon as a whole,” Jassy said in the note.
The areas of Amazon’s business most affected are expected to be cloud computing, human resources, advertising and Twitch’s live streaming business. After going on a hiring spree during the coronavirus pandemic, the company is currently undergoing its largest round of layoffs ever. By the end of 2021, the company’s workforce had increased from 798,000 in the fourth quarter of 2019 to more than 1.6 million.
Jassy, who succeeded Jeff Bezos as CEO of Amazon in July 2021, is conducting a comprehensive analysis of the company’s expenses as it deals with a recession and slow growth in its core retail business. Amazon stopped hiring for the company’s workforce, put some pilot projects on hold, and slowed the growth of its warehouses.
Jassy said he remains optimistic about the company’s “biggest business,” which is its e-commerce business and Amazon Web Services. The company still plans to invest in new divisions this year though it plans to operate more efficiently.
Following this news, Amazon stock fell more than 2% during Monday afternoon trading.
Read the The full note from Jassy at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and internet censorship. Follow him on Twitter @tweet
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