Amazon has announced that it will lay off more than 18,000 employees, 6% of its corporate workforce. The layoffs will largely impact the company’s e-commerce and HR departments and will be communicated to affected employees starting on January 18th.
This lay off comes as Amazon prepares for slower growth amid rising inflation and decreased spending from both businesses and consumers. Amazon’s stock price has also dropped significantly in the past year. In November, the company began laying off employees in its devices division, targeting around 10,000 cuts.
The tech industry as a whole has seen over 150,000 layoffs in 2022, a number that is expected to continue growing. Just this week, Salesforce announced plans to cut around 10% of its staff, numbering nearly 8,000 as of October 31st.
The news of Amazon’s layoffs surpasses the 11,000 cuts announced by Facebook parent company Meta Platforms last year. Amazon’s CEO, Andy Jassy explained the decision to disclose the layoffs before informing affected employees was due to a leak.
Amazon is required to file certain legal notices for mass layoffs and plans to offer severance pay to affected employees. Despite the difficult economic climate, Jassy assured that Amazon has weathered tough times in the past and will continue to do so.
