In the next weeks, Amazon is expected to fire some 9,000 workers, according to a message CEO Andy Jassy addressed to staff. Amazon Web Services, advertising, and Twitch departments would be most impacted by the reduction. Jassy says that the cost-cutting “second phase” of operational planning that the layoffs are a part of. The impacted employees won’t be told until the final cutbacks are announced, which, he says, is unlikely to happen until mid-to-late April. Amazon plans to provide severance money, temporary health insurance, and support in finding other employment.
The news comes after the big-box retailer’s January statement that 18,000 positions will be cut. The majority of the layoffs at the time were made in recruitment and retail. The corporation blamed the layoffs on an “uncertain economy” and concerns about performance in the foreseeable future. According to Jassy, Amazon wants to be more efficient while still having the funds to invest in improved user experiences.
This year, several internet titans have announced layoffs in addition to Amazon. After reducing its workforce by 11,000 jobs in the autumn, Meta just stated that it will fire an additional 10,000 employees. Yet, compared to many other businesses, Amazon’s anticipated layoffs are more significant. Twitch is included in the layoffs, it’s important to note. Early on in the pandemic, the streaming service had substantial growth, but according to Streamlabs and Stream Hatchet, viewing has been dropping since the spring of 2021. Simply said, Twitch is not as popular as it was when people were mostly restricted to their homes.
The company’s image will probably suffer as a result of the layoffs, and they may also cast doubt on the state of the larger IT sector. Amazon is still one of the most valuable firms in the world, therefore it will probably survive this crisis. Yet, the news will be upsetting to the impacted employees and emphasises how unstable employment is in the computer industry.