Tech giant Amazon announces plans to cut 18000 jobs

Tech giant Amazon has announced plans to cut 18,000 job, the biggest single reduction in head count since the company launched. The news was initially leaked, but later confirmed by the company’s CEO Andy Jassy.

Andy Jassy

“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” said Jassy in a blog. “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 starting on January 18.”

Jassy said that the majority of cuts will come in the company’s stores and its PXT division (people, experience and technology). As yet, it is unclear how the cuts will impact on the company’s content division, which is reckoned to have spent $15bn in 2022. Aside from expensive shows like its Lord of the Rings spin-off Rings of Power, it has also been investing heavily in high-profile live sports rights.

Jassy said: “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue opportunities with a stronger cost structure; however, I’m optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating roles.”