New Delhi: Amazon plans to eliminate 9,000 more jobs in the next few weeks, CEO Andy Jassy said in a memo to staff on Monday. The job cuts would mark the second largest round of layoffs in the company’s history, adding to the 18,000 employees the company said it would lay off in January.
In the memo, Jassy said the second phase of the company’s annual planning process was completed this month and led to the additional job cuts. He said Amazon will still hire in some strategic areas.
Some may ask why we didn’t announce these role reductions with the ones we announced a couple of months ago.
The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible, Jassy said.
This time around, the job cuts will hit profitable areas for the company including its cloud computing unit AWS and its burgeoning advertising business. Twitch, the gaming platform Amazon owns, will also see some layoffs as well as Amazon’s PXT organizations, which handle human resources and other functions.
The prior layoffs had also hit PXT, the company’s stores division, which encompasses its e-commerce business as well as company’s brick-and-mortar stores such as Amazon Fresh and Amazon Go, and other departments such as the one that runs the virtual assistant Alexa.
Amazon has also been cutting back on other areas. Earlier this month, the company said it would pause construction on on its headquarters building in northern Virginia, though the first phase of that project will open this June and welcome 8,000 employees.