Amazon Set to Cut Thousands of Jobs This Week, Sources Say
URGENT UPDATE: Amazon is preparing to announce substantial job cuts impacting thousands of employees as early as this week. Internal messages reveal that managers across the US, UK, and Canada have been alerted to brace for significant layoffs, with estimates suggesting up to 30,000 positions may be affected.
According to sources familiar with the matter and internal documents reviewed by Business Insider, the announcement is expected on Tuesday. A draft email intended for impacted employees outlines a severance package that includes full pay and benefits for the next 90 days.
This drastic decision comes as Amazon continues to adapt following a notable slowdown in growth post-pandemic. CEO Andy Jassy has been implementing a rigorous cultural reset within the company, aimed at enhancing efficiency and reducing costs. The cuts will touch various teams, including human resources and retail, as the company prioritizes its future direction.
Amazon’s corporate workforce swelled to 1.6 million employees between 2019 and 2021, but this number has since decreased to 1.55 million last year. Since late 2022, the company has already laid off at least 27,000 employees. Jassy’s recent communications have indicated that advancements in artificial intelligence may further reduce workforce needs.
The latest round of cuts follows Amazon’s decision to freeze hiring budgets for its retail division and implement layoffs within its cloud business, Amazon Web Services, earlier this year. Fortune previously reported that HR departments could see reductions of up to 15% of staff.
As Amazon braces for these changes, the emotional impact on employees cannot be understated. The upcoming announcement signifies a pivotal moment, not just for the company but for the broader tech industry navigating similar challenges.
Stay tuned for further updates on this developing story as Amazon finalizes its plans and communicates with affected workers.
