Thursday, February 29, 2024

Amazon to lay off another 9,000 staff

Must read

Amazon is cutting another 9,000 jobs in its second round of deep layoffs this year.

Chief executive Andy Jassy announced the redundancies in a company-wide note to employees on Monday, saying: “I’m writing to share that we intend to eliminate about 9,000 more positions in the next few weeks.”

Mr Jassy said the cuts were necessary to reflect the “uncertain economy in which we reside”.

The announcement takes redundancies across the global tech sector to almost 140,000 so far this year. Job losses are well on track to surpass 2022’s total of 161,000, according to open source project Layoffs.fyi which has been tracking redundancies in the tech sector since the pandemic.

The latest round of redundancies at Amazon follows on from 18,000 cut jobs announced in January, which included 1,200 UK redundancies.

Jobs will be lost across the company’s online hosting division, Amazon Web Services, its HR, technology and advertising departments, and its Twitch game streaming website.

A spokesman declined to say how many jobs would be lost in the UK, where it employs over 70,000 people.

Like other technology companies, Amazon expanded rapidly during the pandemic as lockdowns prompted people to live more of their lives online.

However, the end of Covid-19 restrictions and the slowing global economy have left many tech companies overstaffed.

Amazon made a record loss of $2.7bn (£1.69bn) for the final three months of 2023.

Mr Jassy said the company had “added a significant amount of headcount” over the past few years.

He said: “This made sense given what was happening in our businesses and the economy as a whole.

“However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

Last week Instagram owner Meta announced a fresh round of 10,000 job cuts, having announced 11,000 in November.

In a sign of how quickly momentum has shifted in the sector, Amazon was announcing aggressive expansion plans as recently as eight months ago.

Last July Amazon pledged to hire another 4,000 people in Britain, boasting that this would take into the UK’s top 10 private sector employers.

About 1.5 million people worldwide are employed by Amazon in jobs ranging from tech to advertising, warehouse operations and corporate functions.

Latest article