Amazon to axe 18,000 roles in bid to cut costs

Amazon has announced that it will axe over 18,000 roles across the group in a bid to cut costs following a business review that was launched last year. 

In a note to staff published today (5 January), CEO Andy Jassy said the reductions will include those that were first announced last November, and that while several teams are impacted, the majority of job losses will be in Amazon Stores and People, Experience, and Technology (PXT) organisations.

He told staff that this year’s review “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years”. 

Last November, Jassy announced the group would be axing a number of positions across Amazon’s Devices and Books businesses, whilst confirming there would be a voluntary reduction offer for some employees in the PXT organisation. 

At the time, 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, warning that further cuts to its workforce should be expected in 2023.

In today’s update, Jassy said: “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.”

He added that the group would “typically wait to communicate about these outcomes until we can speak with the people who are directly impacted”, but the announcement was brought forward after the information was leaked by an insider. 

Amazon will communicate with impacted employees starting on 18 January.