Job cuts will continue into 2023, warns Amazon CEO

Amazon has confirmed that further cuts to its workforce should be expected in 2023, as the group continues its annual operating planning review, following reports it was planning to cut up to 10,000 jobs.

In an open letter to staff, CEO Andy Jassy said team leaders across the group were assessing workforce levels and investments that needed to be made for the “long-term health” of the business.

He noted that this year’s review had been particularly difficult “due to the fact that the economy remains in a challenging spot and we’ve hired rapidly the last several years”.

While incremental hires have already been paused, Amazon has also cut a number of roles across its Devices and Books businesses. In addition, it has announced a voluntary reduction offer for some employees in its People, Experience, and Technology (PXT) organisation.

Jassy confirmed that this annual planning process will extend into the new year, bringing more role reductions “as leaders continue to make adjustments”.

Impacted employees will be made aware of these decisions early next year, with Jassy noting the group is “working to support those who are affected and trying to help them find new roles on teams that have a need”.

Where this is not possible, he said Amazon is offering packages that include a separation payment, transitional health insurance benefits, and external job placement support.

In the letter to staff, Jassy said: “We haven’t concluded yet exactly how many other roles will be impacted (we know that there will be reductions in our Stores and PXT organisations), but each leader will communicate to their respective teams when we have the details nailed down. And, as has been the case this week, we will prioritise communicating directly with impacted employees before making broad public or internal announcements.

“I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time (and, we’ve had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic). It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted.”

He added: “Amazon has weathered uncertainty and difficult economies in the past, and we will continue to do so. We have big opportunities ahead, both in our more established businesses like Stores, Advertising, and AWS, but also in our newer initiatives that we’ve been working on for a number of years and have conviction in pursuing (e.g. Prime Video, Alexa, Kuiper, Zoox, and Healthcare).

“The key will be to do what Amazon does best – obsess over customers and invent relentlessly on their behalf – and if we do that, we should all be very optimistic about Amazon’s future. I know I am.”