Amazon to lay off 16,000 employees amid restructuring efforts
What's the story
Amazon has announced plans to cut around 16,000 jobs in a major restructuring effort. The move comes just three months after the company laid off 14,000 workers in October. The latest round of layoffs will primarily affect the corporate positions and is part of Amazon's broader strategy to streamline its operations.
Employee support
Amazon's commitment to support affected employees
Beth Galetti, Amazon's Senior Vice President of People Experience, said in a memo to employees that the company is "working hard to support everyone whose role is impacted." She added that most US-based employees will be given 90 days to find a new internal role. If unsuccessful or unwilling, they shall receive severance pay, outplacement services, and health insurance benefits.
Strategic focus
Future hiring and investment plans
Despite the job cuts, Galetti emphasized that Amazon will continue to hire and invest in strategic areas critical to its future. She said these changes are aimed at "reducing layers, increasing ownership, and removing bureaucracy." This comes as part of a broader trend among tech giants like Microsoft and Meta Platforms who have also announced significant job cuts amid economic uncertainties.
Workforce size
Workforce and financial performance
Amazon's global workforce stands at around 1.55 million employees, according to a filing from last year. Despite the job cuts, the company has been performing very well financially. In its latest quarter, Amazon's profits surged by nearly 40% to about $21 billion, while the revenue jumped to over $180 billion.
Market impact
Amazon's job cuts amid economic uncertainties
The job cuts at Amazon come as the US economy struggles with high inflation and a slowing labor market. In December, the country added only 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November. Companies like UPS and Pinterest have also announced plans to cut thousands of jobs amid these economic challenges.