Amazon to Eliminate Over 18,000 Positions Starting January 18

Amazon CEO Andy Jassy has shared a public staff note that says just over 18,000 roles will be eliminated as part of its previously discussed workforce reduction strategy. Amazon employees all over the world will be impacted and the majority of role eliminations are in the Amazon Stores and People, Experience, and Technology (PXT) organization.

Back in November last year, Amazon announced it will be laying off a large number of employees as part of its planning process for 2023. The reasons for the layoffs, as cited by Jassy, are the uncertain economy and rapid hiring in the past few years. After reviews, the company has shared it will need to eliminate even more positions, now totaling just over 18,000.

In a public staff note shared by the CEO, these 18,000 plus positions will be eliminated across several teams around the globe. The note states that the majority of these role eliminations are from the Amazon Stores and PXT organizations. The employees who have been impacted will be informed starting on January 18. Amazon will provide packages that include a separation payment, external job placement support, and transitional health insurance benefits.

Jassy also mentioned that typically, the officials would first speak with the employees impacted and then communicate about the outcomes, but because the information was leaked by one of the team members, Jassy decided to let the employees know directly and early on.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles,” Jassy stated.

Amazon did not specifically mention if employees in Canada will be affected by this plan. Union workers from London and France have stated they their workforce will not be impacted by it. Spain’s union members, however, are unsure if the plan will lead to layoffs in the country.

The layoffs started in November last year across the Devices and Books businesses and the company also announced a voluntary reduction offer for some employees in the PXT organization.

Vineet Washington