Amazon to Cut 9,000 More Jobs, Including at AWS

(Bloomberg) -- Amazon.com Inc. is laying off an additional 9,000 employees, adding to cuts that were already the largest round of firings in the company’s history.

Chief Executive Officer Andy Jassy announced the cuts internally Monday, saying they would occur in the coming weeks and primarily affect Amazon Web Services, human resources, advertising and the Twitch livestreaming service groups.

The e-commerce giant has been laying off mostly corporate workers after a hiring spree during the pandemic left Amazon with too many people. The company last month wrapped up a round of job cuts that totaled about 18,000 workers. Those layoffs landed heaviest on Amazon’s recruiting and human resources teams, its sprawling retail group, as well as its devices teams. 

The cuts come less than a week after Facebook owner Meta Platforms Inc. announced that it was laying off another 10,000 employees and closing about 5,000 additional open roles in its own second major round of job cuts. Meta Chief Executive Officer Mark Zuckerberg told employees during a recent internal meeting that the economic climate of layoffs and restructuring could last “many years.”

Other tech giants have reduced their headcount, including Google parent company Alphabet Inc., Microsoft Corp., Dell Technologies Inc. and International Business Machines Corp. As of early February, more than 67,000 jobs had been eliminated across the industry since the beginning of the year, according to data compiled by Bloomberg.

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It’s a continuation of a worrying trend from 2022, when the tech sector announced 97,171 job cuts, up 649% compared with the previous year, according to consulting firm Challenger, Gray & Christmas Inc.

Amazon employed 1.54 million people worldwide at the end of December. The vast majority of those workers are hourly employees who pack and ship products in warehouses. Before the first round of layoffs began in November, the company had roughly 350,000 corporate employees. 

Jassy said the latest cuts came after teams completed another phase of the company’s annual planning process. He said that for the last several years most of Amazon’s businesses added significantly to their ranks. 

“However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” he said in his memo, published later to Amazon’s corporate blog. “The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”

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Amazon’s goal is for teams that are on the hook for cuts to determine which positions to eliminate by mid to late April, Jassy said.