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Amazon CEO Andy Jassy published a note on staff layoffs, adding that the process would extend into 2023.
In addition to news of Amazon (NASDAQ: AMZN) planning to let go of thousands of employees, the company has added that the layoffs will extend into 2023. After many companies had to let go of employees this year to cut costs amid the global economic meltdown, some are gradually, and some are still struggling to stay afloat. The news came out earlier this week that Amazon is terminating jobs roles in technology and corporate. According to a person familiar with the matter, the e-commerce company could be shedding about 10,000 employees. This is set to be another significant layoff in the market, following Meta (NASDAQ: META), which recently cut 11,000 employees.
Also, Amazon is making the decision to lay off employees after announcing disappointing Q3 results. In reaction to the financial report, the company’s shares dropped over 13% on the monthly chart. The recent stock price correction means Amazon has fallen below the $1 trillion market valuation for the first time since April 2020. At press time, the company is up 0.24% to $95.08 in after-hours trading. Data shows that the company has declined over the past year, losing more than 48%.
Amazon Staff Layoffs to Extend into 2023
Amazon CEO Andy Jassy published a note on staff layoffs, adding that the process would extend into 2023. The top executives revealed that the company is in the middle of its “annual operating planning review,” where it looks into its businesses and decides on whether to make changes and what changes to make. He added that other executives in charge of teams are also doing reviews and taking necessary steps. The CEO emphasized the challenges of this year’s review, especially with the current economic condition.
Specifically, Amazon revealed the decision to cut jobs across its Devices and Books businesses. There would also be a voluntary reduction offer for some staff in the People, Experience, and Technology (PTX) organization. Jassy continued:
“Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments. Those decisions will be shared with impacted employees and organizations early in 2023… And as has been the case this week, we will prioritize communicating directly with impacted employees before making broad public or internal announcements.”
According to the CEO, the most difficult decision he had to make since he assumed duties over a year was the workers’ layoffs, which will, unfortunately, continue in 2023. However, he added that Amazon would support affected workers and fix them in teams with vacant roles. And if they can no longer get a job with the company, there would be a package for them. This includes a “separation payment, transitional health insurance benefits, and external job placement support.”