Amazon to lay off 18,000 corporate and technology workers – GeekWire

Story updated with comments from Amazon CEO Andy Jassy.

Amazon’s cuts to corporate and technology levels will affect more than 18,000 workers — far more than the 10,000 planned to be laid off when layoffs begin in early November.

In a memo to employees posted on Amazon’s blog Wednesday, CEO Andy Jacey announced for the first time the number of cuts the company is taking as it plans to cut costs amid uncertain macroeconomic conditions.

Earlier reports in November confirmed a drop of around 10,000 people.

Most of the cuts will affect Amazon Stores (the company’s retail arm) and People, Experience and Technology (its HR arm), Jassy said in the memo.

“These changes will help us pursue our long-term opportunities with a strong cost structure; however, I am optimistic that we will be creative, resourceful and agile during this time of layoffs and eliminating some roles,” Jassy told employees.

Jassy previously announced the cuts in November, which will continue until 2023.

The Wall Street Journal reported on the revised numbers earlier Wednesday.

If the jobs affect as many employees as expected, they will be the largest in the history of the Seattle tech giant.

The Journal also noted that the 18,000 figure would mark the largest job cuts announced during a wave of layoffs at major tech companies.

Amazon has previously told its employees it would end corporate hiring, and layoffs at Meta, Twitter, Lyft, Redfin, Convoy, Stripe, Flyhomes and a host of other companies are looking for ways to cut costs amid the economic slowdown. Salesforce said on Wednesday it was cutting 10% of its workforce.

Amazon CFO Brian Olsavsky told analysts on Amazon’s latest earnings call that the company is preparing for “what could be a period of slower growth” due to increased foreign exchange headwinds, global inflation, rising oil prices and energy costs.

During the pandemic, Amazon was hired to help meet demand as more people shopped online. The company employs 75,000 people in the Seattle region, many of them corporate and technology workers, as part of a workforce of 1.54 million people worldwide, including warehouse workers not affected by recent layoffs.

Amazon met expectations for third-quarter revenue, reporting $127.1 billion, up 15% year over year. It reported net income of $2.9 billion, or $0.28 per share, which was in line with expectations.

But its fourth-quarter guidance was below expectations of $140 billion to $148 billion, compared with estimates of $155 billion. Operating income is expected to be between $0 and $4 billion, reflecting broader economic uncertainty.