According to the most recent report, Amazon has commenced its second round of layoffs on Wednesday, as previously announced by the company last month.
Amazon Commenced Latest Round of Job Cuts
It has been reported that Amazon will be cutting jobs for around 9,000 employees across several departments, with the first impact being felt in its cloud service operation and human resources divisions.
As per the reports, Amazon, the prominent e-commerce company, initiated the layoff process on Wednesday for these two departments.
Amazon’s profitable division, Amazon Web Services (AWS), has reportedly been experiencing a slowdown in sales growth, leading to the company’s decision to implement layoffs.
These job cuts will be spread across the globe, starting with employees in the United States, Canada, and Costa Rica, as per the notification issued by the company.
How Did This Happen?
According to reports, CEO Adam Selipsky and Human Resources Head Beth Galetti informed the affected employees of the layoffs on Wednesday.
The notifications were sent to employees in the United States, Canada, and Costa Rica, who were going to lose their jobs.
According to an internal memo obtained by CNBC, Adam Selipsky, the chief of AWS, stated that it was a difficult day for the entire organization.
Adam Selipsky further added that the decision to eliminate some roles across Amazon globally, including within AWS, was a difficult one, and the conversations with affected employees within AWS started on the same day.
The notification messages were sent to all the impacted employees located in the US, Canada, and Costa Rica.
According to Selipsky, they are making efforts to treat all impacted employees with respect and are providing several resources and touchpoints to aid in their transition.
This includes packages that consist of a separation payment, transitional health insurance benefits, and external job placement support.
As per earlier announcements, CEO Andy Jassy had declared around 9,000 job cuts during March, while 18,000 job eliminations had already been announced in November and January.
To reduce costs, Amazon had implemented a plan that involved downsizing its workforce in its advertising unit on April 18th.
CEO Andy Jassy had initiated this plan as a precautionary measure amid rising concerns over the possibility of a recession, leading to aggressive cost-cutting measures across the company.
Additionally, the company put a freeze on hiring for its corporate workforce, terminated some experimental projects, and decelerated warehouse expansion as part of its cost-cutting measures.
