Amazon has already implemented a hiring freeze in the company’s workforce as it looks to slow headcount growth. The company is still hiring warehouse workers to prepare workers for the express holiday period.
Job cuts are hitting the tech sector hard after years of runaway growth. Meta, Facebook’s parent company, laid off 13% of its staff last week, while Twitter, Shopify, Salesforce and Stripe also announced cuts.
Two weeks ago, Beth shared that S-Team and I decided to stop new incremental hires in the company’s workforce. Today, I want to share some information about deleting roles. We’re in the middle of our annual operating planning review where we look at each of our businesses and make decisions about what we think needs to change. Leaders across the company work with their teams and look at their workforce levels, the investments they want to make in the future, and prioritize what’s most important to customers and the long-term health of our business. This year’s review is even more challenging due to the fact that the economy is still in trouble and we’ve hired quickly in the last several years.
Yesterday, we communicated the difficult decision to cut a number of positions across the Hardware and Books businesses, and also announced a voluntary reduction offer for some employees in the People, Experience, and Technology (PXT) organization. Our annual planning process extends into the new year, which means there will be more role cuts as leaders continue to make adjustments. These decisions will be shared with affected employees and organizations in early 2023. We’re not yet done with exactly how many other roles will be affected (we know there will be reductions in our stores and PXT organizations), but each leader will communicate with their teams as we work out the details. And as was the case this week, we will prioritize direct communication with affected employees before making large-scale public or internal announcements.
I’ve been in this position now for about a year and a half, and without a doubt, this is the hardest decision we’ve made during that time (and we’ve had to make some very tough calls over the past few years, particularly during the heart of the pandemic). It doesn’t make me or any of the leaders who make these decisions miss that these are not just roles we’re eliminating, but rather people with passions, aspirations, and responsibilities whose lives will be impacted. We work to support those affected and try to help them find new roles in teams that have a need; Where this is not possible, we offer packages that include severance payments, transitional health insurance benefits, and overseas employment support.
Amazon has weathered uncertainty and tough economies in the past, and we will continue to do so. We have great opportunities ahead, both in our more established businesses like Stores, Advertising, and AWS, but also in our newer initiatives that we’ve worked on for a number of years and have conviction in pursuing (such as Prime Video, Alexa, Kuiper, Zoox, and Healthcare). The key will be to do what Amazon does best — obsessing over customers and relentlessly inventing on their behalf — and if we do, we should all be very optimistic about Amazon’s future. I know I am.
I would like to thank each and every one of you for your continued contributions during this difficult time as we prepare to deliver orders to customers during the busy shopping season.
This is breaking news. . Please check back for updates