Amazon Layoffs 2023: Amazon Web Services CEO Adam Selipsky and Head of Human Resources Beth Galetti have sent notifications to employees in the United States, Canada, and Costa Rica about the job cuts. Selipsky acknowledged in the memo that it was a difficult day for the entire organization.
Amazon Layoffs 2023
These layoffs are part of previously announced cuts and are expected to impact around 9,000 employees. Amazon laid off some workers in its advertising unit last week, while it also eliminated some roles in its video games and Twitch live streaming units in recent weeks.
Earlier this year, Amazon wrapped up a separate round of cuts that affected approximately 18,000 employees. The combined layoffs, including those this month, make it the largest layoffs in Amazon’s 29-year history.
Amazon CEO Andy Jassy has been taking an aggressive approach to cut costs across the company as the e-retailer copes with the economic downturn and slower growth in its core retail business. To achieve this, Amazon froze hiring in its corporate workforce, stopped some experimental projects, and slowed warehouse expansion.
With layoffs announced in ads and AWS, Jassy has shown that Amazon’s two most profitable businesses are not immune to cost-cutting. Both AWS and ads have been experiencing slower growth in recent months as companies reduce their spending in a challenging economic environment.
Some teams within AWS were also impacted by earlier layoffs, and the current round of cuts is expected to land in AWS’ professional services arm, which assists customers in troubleshooting issues with their cloud infrastructure, according to an anonymous current employee.
During the pandemic, headcount in AWS grew significantly, which proved to be a huge boost for Amazon and other cloud providers, as companies, government agencies, and schools rushed to transition to the cloud.
The focus is now on identifying and prioritizing Amazon’s top projects that matter most to its customers and business, given the rapid growth and overall business and macroeconomic climate, according to Selipsky.
Amazon will announce its first-quarter earnings on Thursday, and investors will be keen to know if Jassy’s cost-cutting measures have boosted profitability and when Amazon executives expect AWS growth to pick up again.
In mid-morning trading on Wednesday, Amazon shares surged by 3.2%.
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