Amazon announces mass layoffs, cutting 18,000 jobs

By Khizer Hayat


Image: Unsplash

Amazon has taken drastic measures to appease investors, and in the following weeks will have pared down their workforce.

Image Credit: Unsplash

The company has announced plans to lay off more than 5% of its workforce,

with the total number of layoffs expected to exceed 18,000 in the coming weeks. 

The job cuts will broadly impact the company's e-commerce and human resources organizations, according to Amazon CEO Andy Jassy.

In a statement, Jassy explained that the layoffs are intended to "pursue our long-term opportunities with a stronger cost structure"

and that affected employees will receive separation payments, transitional health insurance benefits, and external job placement support.

The layoff decisions will be communicated starting on January 18th. 

Earlier reports had indicated that the number of layoffs would be around 10,000,

but the Wall Street Journal, citing Amazon itself, reports that the total will be significantly higher.

The layoffs come as Amazon faces pressure due to the resumption of in-person work and shopping as the world begins to reopen following the COVID-19 pandemic. 

In response, the company has cut back on spending and frozen hiring, leading ultimately to the decision to lay off a portion of its workforce.

Amazon was among many companies that saw increased demand for online shopping during the pandemic. 

The company surged to success, multiplying its logistics services and bloating the payroll with fresh hires.

However, with the easing of pandemic restrictions, the company has faced challenges and has had to adjust to remain competitive.

Amazon's massive layoff of 18,000 employees has made headlines across the tech industry - a historic move by one of the world's foremost corporations.

After careful consideration, Amazon has decided to make a dramatic 5% reduction in its corporate staff, with layoffs hitting those involved in devices, retail operations, and recruitment.