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Amazon plans to downsize 9,000 employees worldwide

Amazon plans to slash more than 9000 jobs in the next few weeks in its second round of layoffs over the past three months.

The job cuts will primarily affect PXT (people experience and technology), AWS, Twitch, and advertising, said CEO Andy Jassy in a note to employees posted to the company’s blog.

“This was a difficult decision, but one that we think is best for the company long term,” the blog read.

The recent cuts are in addition to the planned downsizing of 18,000 employees that the ecommerce firm revealed in January.

“The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole,” it added.

Both rounds of layoffs were made a part of the company’s annual planning process. Leaders across the company work with their teams to decide what investments they want to make for the future, prioritising what matters most to customers and the long-term health of company’s businesses.

The global workforce of the company bloated to 1.6 million by the end of 2021, up from 7,98,000 in the fourth quarter of 2019. 

Amazon saw a surge in its advertising revenue in its third quarter earnings, hitting $11.6 billion, which was 23% higher than the previous year.

The ecommerce firm did not make these role reductions public knowledge with the January layoffs.

“The teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,” Jassy said in the blog.

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