Amazon’s layoffs may be expanding in breadth. Amazon CEO Andy Jassy announced in a note to employees that the company will lose another 9,000 jobs in the “coming few weeks.”
According to the letter, the cuts will mostly affect Twitch, advertising, and cloud computing divisions such as Amazon Web Services.
The CEO also warns that the final layoffs are unlikely to be made until mid-to-late April and that Amazon would not notify affected employees until then.
According to Jassy, the extended layoffs are the result of a “second phase” of operational planning aimed at cost-cutting. Several teams were not prepared for the initial wave of layoff announcements in November.
“And the business intended to publish decisions early in order to convey information “as quickly as feasible,” according to Jassy. The online shop is guaranteeing severance pay, transitional health insurance coverage, and assistance in finding alternative employment.
After a report by CNBC, Amazon verified the existence of the document. Jassy, as before, blames the cuts on an “uncertain economy” and continuing concerns about near-term performance.
According to the CEO, the company wants to be “more streamlined” while still having the resources to invest in better experiences.
Reports circulated last fall that the corporation would lay off 10,000 people, but the company stated in January that it will cut 18,000 jobs. At the time, the majority of the layoffs were in retail and recruiting.
Amazon closed some of its physical storefronts and closed some business units last year. While the business benefited from the change to internet purchasing during the COVID-19 pandemic, it experienced turbulence when individuals returned to their pre-pandemic habits.
Amazon is not the only major technology business to announce layoffs this year, nor is it the only one considering bigger cuts. Meta announced this month that it would lay off another 10,000 employees after laying off 11,000 in the fall.
Amazon, on the other hand, is presently slashing more aggressively than many others. It’s also worth noting that Twitch is among those laid off.
The live streaming service excelled during the early pandemic, but according to Streamlabs and Stream Hatchet, viewership has been steadily declining since spring 2021. Put put, there is less demand for Twitch than there was when people were locked at home.