Amazon has announced second round of layoff and revealed that it is firing as many as 9,000 employees. The company has already laid off 18,000 workers earlier this year.
By Ankita Garg: Amazon has announced the layoff of 9,000 more employees. The company's CEO Andy Jassy has sent a message to the impacted employees, saying that Amazon is going through a difficult time and that it will have to take this step to save costs. This is not the first time that the e-commerce giant is sacking employees as it eliminated as many as 18,000 workers in January this year. This basically means Amazon has fired a total of 27,000 people.
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"We intend to eliminate about 9,000 more positions in the next few weeks—mostly in AWS, PXT, Advertising, and Twitch. This was a difficult decision, but one that we think is best for the company in the long term," Jassy said in the email that was sent to employees.
But why is Amazon firing thousands of employees again? Well, the company's CEO has explained that Amazon overhired people in the past few years and now, it will have to sack employees to save costs and use resources carefully because of the economic downturn. He also asserted that the move would help the company in the long run and use the saved money for better things.
"Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount," he said. Jassy further explained that the company didn't announce both layoffs at once because not all the teams were done with their analyses in the late fall and so, the second round of layoffs is happening now.
"As our internal businesses evaluated what customers most care about, they made re-prioritization decisions that sometimes led to role reductions, sometimes led to moving people from one initiative to another, and sometimes led to new openings where we don’t have the right skills match from our existing team members," he added. This led Amazon to cut 18,000 jobs in January and now that it has completed the second phase of planning this month, the company has fired an additional 9,000 roles.
The CEO has asserted that the company aims to complete the latest layoff process by mid to late April. He also confirmed that Amazon will support those employees who have been laid off. It is promising to provide packages that include a separation payment, transitional health insurance benefits, and external job placement support.
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Amazon starts 2nd round of layoff, fires 9000 employees - India Today
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