Amazon CEO warns of more layoffs in 2023

Jassy says it's 'the most difficult decision' the company has made

Amazon CEO warns of more layoffs in 2023

Amazon CEO Andy Jassy has announced that the company will see more layoffs in the coming year, as the e-commerce and data services giant moved to eliminate thousands of jobs before yearend.

Jassy did not indicate how many employees will be affected, but said in a blog post on Friday that there will be job reductions in Amazon stores and the People, Experience, and Technology (PXT) organization.

"We haven't concluded yet exactly how many other roles will be impacted, but each leader will communicate to their respective teams when we have the details nailed down," he said. "We will prioritize communicating directly with impacted employees before making broad public or internal announcements."

According to Jassy, the reductions come as leaders in the company continue to make adjustments to their annual operating planning review.

"This year's review is more difficult due to the fact that the economy remains in a challenging spot and we've hired rapidly the last several years," the Amazon CEO said.

Amazon employs more than 1.6 million people worldwide.

The announcement came after Dave Limp, senior vice president of devices and services at Amazon, said on Thursday that the company has decided to "consolidate some teams and programs."

"One of the consequences of these decisions is that some roles will no longer be required. It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result," Limp said.

According to Limp, the affected employees have been notified and were given support in finding new roles.

"In cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support. We know people across the organization may be impacted differently by this news and will lead with compassion for all team members," he said.

Seattle-based Amazon is in the midst of laying off about 10,000 people, according to a report this week in the New York Times.

In Jassy’s note to Amazon employees on Friday, he described the recent reductions as "the most difficult decision" the company has made.

Amazon joins the list of organizations that are implementing layoffs. Meta, Facebook's parent company, said it laid off 13% of its workforce. Disney also announced that it is "anticipating some staff reductions" and will be limiting its headcount.

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