American multinational technology company Amazon plans to inform employees who will lose their jobs starting January 18, 2023.
The company’s CEO Andy Jassy disclosed that it had to share its job cut plans early with affected employees after the information was leaked by one of their teammates.
He disclosed that the company initially wanted to wait to communicate about this outcome until it can speak to employees who will be laid off, but has been forced to do so.
The CEO Wrote,
“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted.
“However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me.”
Amazon proposed job cuts have taken a new dimension after the e-commerce giant disclosed that it will cut more jobs than it had initially planned.
Recall that last year November, Amazon had initially planned to lay off 10,000 workers, after it disclosed that it added workers too quickly, especially in warehouses as consumers shifted to online ordering.
At the end of the third quarter (Q3) of 2022, the company had employed 1.54 million people.
As the global economic outlook continues to worsen, the e-commerce company disclosed that it has been forced to increase the number of its workforce that will be laid off, noting that most cuts will come in the Stores and People, Experience, Technology (PXT) groups, as well as the human resources department.
The executives which recently met to discuss how the downsizing of its workforce will help the company revealed that the layoffs will help it pursue long-term opportunities with a stronger cost structure.
They however acknowledged the job cuts as a difficult decision, noting that these role eliminations are difficult for people, which they do not take it lightly or underestimate how much they might affect the lives of those who are impacted.
Last year, Amazon was faced with dwindling revenue as it battled several economic challenges such as rising inflation, fuel cost, and other macroeconomic factors.
This forced it to slap a 5% surcharge on its online sellers.
The e-commerce giant suffered losses in year-over-year income as post-pandemic shopping habits and inflation affected its revenue.
In its third quarter (Q3) 2022 earnings report, its operating income decreased to $2.5 billion in Q3 2022 compared to $4.9 billion in the same quarter last year, while net income dipped to $2.9 billion versus $3.2 billion during Q3 2021.
The company founder Jeff Bezos who has been critical of President Joe Biden’s economic policies faulted him for being disingenuous about the forces driving prices higher.