New Delhi: E-commerce giant Amazon is all set to begin layoffs soon. According to a India Today report, CEO Andy Jassy has confirmed the news and announced that more than 18000 employees will be impacted by layoffs, including many from India.
Earlier a Financial Express report suggested that Amazon is planning to lay off 1,000 employees in India as part of its biggest retrenchment exercise across the globe
Amazon CEO Andy Jassy on Wednesday had announced the e-commerce giant will lay off over 18,000 employees, starting January 18. In an email to staff, he cited an “uncertain economy” and “rapid hiring” as reasons behind the job cuts.
“Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles,” he said in the statement to his staff.
Layoffs have hit multiple departments operating from India, across offices in Bengaluru, Gurugram, and others. Loss-making teams are most impacted, India Today said quoting Sources.
The E-commerce platform has sent an email to impacted employees informing them that they have been laid off. The email, our sources confirm, asks the employee to meet the leadership team on a specified date to get more clarity on the situation. In the same email, the company promised to offer 5 months of severance pay.
As I shared back in November, as part of our annual planning process for 2023, leaders across the company have been working with their teams and looking at their workforce levels, investments they want to make in the future, and prioritizing what matters most to customers and the long-term health of our businesses. This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years. In November, we communicated the hard decision to eliminate a number of positions across our Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization. I also shared that we weren’t done with our annual planning process and that I expected there would be more role reductions in early 2023.
Today, I wanted to share the outcome of these further reviews, which is the difficult decision to eliminate additional roles. Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations.
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. We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support.
We typically wait to communicate about these outcomes until we 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. We intend on communicating with impacted employees (or where applicable in Europe, with employee representative bodies) starting on January 18.
Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles. Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year. We often talk about our leadership principle Invent and Simplify in the context of creating new products and features. There will continue to be plenty of this across all of the businesses we’re pursuing. But, we sometimes overlook the importance of the critical invention, problem-solving, and simplification that go into figuring out what matters most to customers (and the business), adjusting where we spend our resources and time, and finding a way to do more for customers at a lower cost (passing on savings to customers in the process). Both of these types of Invent and Simplify really matter.
To those impacted by these reductions, I want you to know how grateful I am for your contributions to Amazon, and the work you have done on behalf of customers. You have made a meaningful difference in a lot of customers’ lives. To those who will continue on the journey with us, I look forward to partnering with you to keep making life better and easier for customers every day and relentlessly inventing to do so.