Amazon layoffs will continue into next year, CEO says

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Amazon layoffs will continue into the new year, CEO Andy Jassy said in a new memo Thursday.

The announcement comes a day after the tech company began laying off workers from its devices team, which focuses on products like its voice-activated Alexa, according to A memo from Dave Limp, senior vice president of devices and services.

“This year’s exam is more difficult due to the fact that the economy remains in a difficult situation and that we have been hiring quickly in recent years,” Jassy said Thursday.

Decisions on Amazon’s final role cuts will be shared in early 2023, Jassy said. It’s not yet known how many jobs will be affected, though the cuts will impact Amazon’s stores and People Experience and Technology Solutions organizations, he said.

The move adds the company to a list of major technology companies that have imposed job cuts in recent weeks, including Facebook-parent Meta and Twitter.

Limp’s memo did not provide details on the extent of the layoffs, but the job losses come at a time when the company typically ramps up its workforce during the busy holiday season.

“We continue to face an unusual and uncertain macroeconomic environment,” Limp’s memo said. “After a series of extensive reviews, we recently decided to consolidate certain teams and programs.”

“In cases where employees cannot find a new position within the company, we will support the transition with a package including severance pay, transition allowances and external job placement assistance,” the memo adds.

The layoffs follow major job cuts at other big tech companies as industry titans pull out of record sales reached during the pandemic, when billions of people around the world were forced into isolation. Customers stuck at home have come to rely on delivery services like e-commerce and virtual connections formed through social media and video conferencing.

However, lingering recession fears, rising interest rates and a return to a pre-pandemic lifestyle have bitten the technology sector.

Under new owner Elon Musk, Twitter fired about half of its workforce of 7,500, citing losses of about $4 million a day.

A few days later, Meta announcement that it would cut about 11,000 employees, which represents about 13% of its workforce. The company reported a second consecutive quarter of declining sales last month.

Lyft, Netflix, Coinbase, Salesforce, Microsoft and Snap are among a slew of other tech companies that have downsized this year.

The tech-heavy Nasdaq has fallen more than 25% in 2022. Amazon shares are down 18% this year.

Third quarter earnings released by Amazon last month fell short of analysts’ earnings expectations, sending the stock down 13% in extended trading on the day of the announcement.

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