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Amazon confirms more than 18,000 employees to be laid off

13 de novembro de 2023 Hi-network.com

Amazon has confirmed that company layoffs will total more than 18,000 employees, with the bulk of job cuts coming later this month. While several teams are impacted, the majority of the job cuts will be in the Amazon Stores and People, Experience, and Technology (PXT) organizations.

The layoffs, which represent the largest round of job cuts in the company's history, are a result of "the uncertain economy," according to a note from CEO Andy Jassy that was posted for employees on Wednesday and shared publicly. Jassy added that Amazon had weathered "difficult economies" in the past and would continue to do so.

Layoffs come after pandemic hiring spree

The layoffs come after a hiring spree during the pandemic, as lockdowns and other precautions caused consumers to turn to online shopping, fueling Amazon's retail business.

Like other tech company leaders who have announced job cuts in the last six months, Jassy said that  Amazon had "hired rapidly over the last several years," but added that the layoffs will help the company pursue more long-term opportunities with a stronger cost structure.

The layoffs will mostly impact the company's physical stores, which include Amazon Fresh and Amazon Go, and its PXT organizations, which handle human resources and other functions. Affected employees will receive packages that include a separation payment, transitional health insurance benefits, and external job placement support.

Jassy had first confirmed that layoffs would be occurring on Nov. 17 last year in a public message to employees, though he did not specify the planned number of employees to be laid off. 

"Between the reductions we made in November and the ones we're sharing today, we plan to eliminate just over 18,000 roles," Jassy said in his note this week. Computerworld, citing sources, first reported on Dec. 2 that Amazon was looking to cut about 20,000 employees - about twice as many as had been previously reported.

This week in his message to employees, Jassy said that the company typically waits to communicate these outcomes until they can speak with the people who are directly impacted. "However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me," he said. 

Amazon intends on communicating with impacted employees - or where applicable in Europe, with employee representative bodies - starting on January 18.

Eighteen thousand employees are the equivalent of about 5.5% of Amazon's corporate staff, or about 1.2% of Amazon's 1.5 million workforce including global distribution center and hourly workers.

"S-team and I are deeply aware that these role eliminations are difficult for people, and we don't take these decisions lightly or underestimate how much they might affect the lives of those who are impacted," Jassy said, referring to Amazon's leadership team.

Amazon faces worker unrest

The announcement this week comes as Amazon faces growing worker unrest. On Wednesday, employees affiliated with the UK's GMB union in Amazon's Coventry warehouse announced they would be staging a strike action on Jan. 25, walking out as part of a fight for better pay.

Currently, Amazon warehouse employee pay starts at a minimum of between

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