The announcement is significant in terms of the number of people affected, even though it only represents 1.2% of Amazon’s 1.5 million global workforce.
In a memo to employees Early this morning, CEO Andy Jassy said that in addition to the roles affected in its devices and books business during the previous announcement in November, the majority of roles affected by the latest cuts will be in its people, experience and technology (PXT) and Amazon Stores companies.
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Infographic provided by SwoonThe layoffs continue
The news comes just a day after Salesforce announced it would be cutting about 10% of its workforce, affecting more than 7,000 employees, and continues a trend that saw numerous companies scale back their workforce by 2022 to combat economic headwinds. Data from the layoff tracking website Dismissed. for your information stilt technology companies will cut more than 150,000 jobs by 2022.
Today’s announcement was seemingly made earlier than Amazon intended a Wall Street Journal report got preliminary details through a leak, which is why Amazon said it has yet to inform those who will be affected, but it plans to do so from January 18.
“We usually hold off on communicating about these results until we can speak to the people directly affected by them,” Jassy wrote. “However, as one of our teammates leaked this information externally, we decided it was better to share this news sooner so you can hear the details directly from me.”
This also means Amazon has yet to announce what kind of severance payments it will provide, though Jassy said it will offer a “severance payment, transition benefits for health insurance and external job placement support.”