# Amazon CEO says job cuts to exceed 18,000 roles
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Amazon to Cut More Than 18,000 Jobs, Reversing Recent Growth
Meta Description: Amazon CEO Andy Jassy reveals plans to cut 6% of corporate workforce, impacting e-commerce and HR. Stock up 1.8%, unions express concerns.
URL: https://financedigest.com/amazon-ceo-says-job-cuts-to-exceed-18000-roleshtml

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By Jeffrey Dastin and Uday Sampath Kumar

(Reuters) -Amazon.com Inc’s layoffs will now increase to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.

The layoff decisions, which Amazon will communicate starting Jan. 18, will largely impact the company’s e-commerce and [human resources](https://www.financedigest.com/the-importance-of-strategic-human-resource-management.html "The Importance of Strategic Human Resource Management") organizations, he said.

The cuts amount to 6% of Amazon’s roughly 300,000-person corporate workforce and represent a swift [turn for a retailer](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") that recently doubled its base pay ceiling to compete more aggressively for talent.

[Amazon has more than 1.5 million workers](https://www.financedigest.com/amazon-loses-bid-to-throw-out-case-by-uk-drivers-seeking-worker-rights.html "Amazon loses bid to throw out case by UK drivers seeking worker rights") including warehouse staff, making it America’s second-largest private employer after Walmart Inc.

Its [stock was up 1.8% at $86.71 in premarket trading](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day") on Thursday.

A spokesperson for London-based trade union GMB said it was aware of the [job cuts](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding"), but that its members will not be affected by the plans.

Members belonging to the [union who work at the Amazon](https://www.financedigest.com/amazon-will-not-cut-jobs-in-italy-unions-say-after-meeting.html "Amazon will not cut jobs in Italy, unions say after meeting") warehouse in Coventry, central England, are planning to stage a walkout on Jan. 25 over a pay row with the e-commerce giant.

Laurent Degoussee of the SUD union in France also said the plans would not [affect the company’s](https://www.financedigest.com/factbox-companies-potentially-affected-by-italys-election.html "Factbox: Companies potentially affected by Italy’s election") Amazon Logistique France unit.

Douglas Harper, a spokesperson for Spain’s largest trade union CCOO, criticized what he said was a total lack of information from the company.

“We don’t know how this will affect us in Spain,” Harper told Reuters. “We can assume that this is the first step preceding layoffs in the rest of operations, not just the corporate workforce, but we don’t have any official data.”

Jassy said in the note that annual [planning “has been more difficult given the uncertain economy](https://www.financedigest.com/planning-to-move-to-the-low-carbon-economy-how-banks-can-plan-today-for-new-stress-tests-arriving-soon-2.html "Planning to move to the low carbon economy: How Banks can plan today for new stress tests arriving soon") and that we’ve hired rapidly over the last several years.

[Amazon has braced for likely slower growth as soaring](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar") inflation encouraged businesses and consumers to cut back spending, and its share price has halved in the past year.

The company began letting staff go in November from its devices division, with a source telling Reuters at the [time it was targeting around 10,000 cuts](https://www.financedigest.com/britains-purplebricks-to-cut-more-than-10-of-jobs-the-times.html "Britain’s Purplebricks to cut more than 10% of jobs – The Times").

The [tech industry shed](https://www.financedigest.com/microsoft-to-shed-10000-jobs-adding-to-glut-of-tech-layoffs.html "Microsoft to shed 10,000 jobs, adding to glut of tech layoffs") more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, a number that’s continuing to grow.

Salesforce [Inc said Wednesday it planned to eliminate](https://www.financedigest.com/intuit-inc-enters-into-new-bank-feed-agreement-with-lloyds-bank-to-eliminate-work-and-drive-insights-for-customers.html "Intuit Inc. Enters into New Bank Feed Agreement with Lloyds Bank to Eliminate Work and Drive Insights for Customers") about 10% of staff, which numbered nearly 8,000 as of Oct. 31.

The reversal of Amazon’s fortunes has been stark. It changed from a [business deemed essential](https://www.financedigest.com/5-essential-leadership-skills-for-family-owned-businesses.html "5 essential leadership skills for family-owned businesses") during the pandemic for delivering goods to locked-down homes, to a company that overbuilt for demand.

Its layoffs now surpass the 11,000 [cuts announced last year](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year") by Facebook parent Meta Platforms Inc.

Jassy’s note followed a report in the [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") Journal that the reduction would be more than 17,000 jobs. He said [Amazon chose to disclose the news before informing affected staff](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day") because of a leak.

Amazon still must file certain legal notices about mass layoffs, and it [plans to pay](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") severance.

Jassy said: “Amazon has [weathered uncertain and difficult economies](https://www.financedigest.com/early-start-to-severe-weather-season-takes-its-toll-on-us-economy-in-february.html "Early start to severe weather season takes its toll on US economy in February") in the past, and we will continue to do so.

(Reporting by Jeffrey Dastin in Palo Alto, Uday Sampath in Bengaluru, Muvija M in London, David Latona in Madrid and Tassilo Hummel in Paris; Editing by Shailesh Kuber, Sherry Jacob-Phillips, Sandra Maler, Kim Coghill and Jan Harvey)


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