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9,000 more Jobs cut by Amazon, the new massive layoff sends shock waves through the tech industry.

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Amazon Layoff

Latest cuts by Amazon impacts HR, AWS, Advertising, and Twitch – adding to previously announced 18,000 job losses

According to an internal memo sent by Amazon CEO Andy Jassy on Monday, the company is set to reduce its workforce by 9,000 employees. The affected individuals will include those working in AWS, Twitch, advertising, and human resources.

Jassy cites the uncertain economic climate as the driving force behind the decision to cut back on costs and streamline the company’s headcount. Amazon had previously laid off a total of 18,000 employees in late 2022 and early 2023, which included workers in retail, hardware and services, and human resources.

“Our goal for this year was to become leaner while still investing in key long-term customer experiences that we believe will significantly enhance their lives and, in turn, benefit Amazon as a whole,” Jassy wrote in the memo.

Amazon’s response to the layoff

Recently, Twitch CEO Emmett Shear resigned from his post, and shortly after, CEO Dan Clancy announced that the company will be downsizing its workforce. It is unclear whether Shear’s resignation is related to the job cuts, as he will still be advising the company. According to Clancy’s blog post, the cuts will affect more than 400 employees. Twitch’s recent changes to revenue sharing have left some streamers feeling dissatisfied, and some have moved to compete platforms like YouTube. Clancy stated that the company’s revenue growth has not met expectations, and they must downsize to sustainably run the business. When asked for more details, Twitch spokesperson Samantha Faught declined to comment and referred to Clancy’s blog post.

As per Jassy, the company did not announce layoffs all at once because some teams were still in the process of conducting internal analyses that could result in the reordering of job priorities.. The company did not want to rush this crucial process. “We chose to share these decisions as we’ve made them so people had the information as soon as possible,” Jassy explained.

Impact of Amazon layoff

As per the internal memo, the teams affected by the layoffs have yet to finalize their decisions regarding the employees to be cut. Amazon aims to conclude this process by mid to late April and subsequently inform the affected employees. Those impacted will receive a severance package, transitional health insurance, as well as external job placement support.

Amazon reported its worst Q4 performance in 2022, posting a net loss of $2.7 billion for the year – its first such loss since 2014. In response to the financial setbacks, the company implemented several cost-cutting measures including the suspension of its second headquarters’ construction in Arlington, Virginia, the closure of some physical Go stores, and a halt to the expansion of its Fresh stores. With the economic downturn affecting various companies, Amazon isn’t the only major company facing financial issues and workforce reductions; Meta, Microsoft, and Google have already laid off tens of thousands of employees this year.

Nonetheless, Amazon CEO Andy Jassy remains optimistic about the future of the company, citing the numerous opportunities in Amazon’s largest businesses such as Stores and AWS, as well as the newer customer experiences and business ventures. In his memo, Jassy emphasized the company’s potential for growth and expansion despite the current challenges.

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