CEO says Amazon layoffs will continue into next year

CEO Andy Jassy said Amazon’s layoffs will continue into the new year a new memo Thursday.

The announcement comes a day after the tech company began laying off staff on its devices team, which focuses on its voice-powered products like Alexa. a memo By Dave Limp, Senior Vice President of Devices and Services.

“This year’s review is more difficult due to the fact that the economy remains in a challenging place and we’ve hired faster than we’ve seen over the past several years,” Jesse said Thursday.

Jesse said a decision on the latest Amazon role cuts will be shared in early 2023. He said it is not yet certain how many jobs will be affected, though the cuts will most likely affect Amazon’s Stores and People Experience and Technology Solutions organizations.

The move adds the company to the list of leading tech firms that have job cuts In recent weeks, that includes Facebook-parent Meta and Twitter.

Limp’s memo did not provide details on the scale of the layoffs, but the job losses come at a time when the company is expanding its workforce during the usually busy holiday season.

“We continue to face an unusual and uncertain macroeconomic environment,” Limp’s memo said. “After a thorough set of reviews, we recently made the decision to consolidate certain teams and programs.”

“In cases where employees cannot find new roles within the company, we will support the transition with a package that includes severance pay, transitional benefits and external job placement support,” the memo said.

The layoffs follow major job cuts at other big tech firms, as industry giants retrench record sales received during the pandemic, when billions of people around the world were put into isolation. Customers stuck at home are increasingly relying on delivery services such as e-commerce and virtual connections made through social media and videoconferencing.

However, fears of a persistent recession, rising interest rates and a return to pre-pandemic lifestyles crunchy technical field.

Under new owner Elon Musk, Twitter laid off nearly half of its 7,500-person workforce, citing losses of about $4 million each day.

days later, meta announced It will cut around 11,000 employees, which is around 13% of its workforce. company informed of The second consecutive quarter of decline in sales last month.

Lyft, Netflix, Coinbase, Salesforce, Microsoft And Snap are among other tech companies that have cut staff this year.

The tech-heavy Nasdaq is down more than 25% in 2022. Amazon shares are down 18% this year.

third quarter revenue A release by Amazon last month fell short of analyst expectations for revenue, sending the stock down 13% in extended trading on the day of the announcement.