'We are working to support those who are affected and are providing packages that include a separation payment'
In the latest round of 2023 job cuts, tech giant Amazon announced today that it intends to cut more than 18,000 jobs, beginning on January 18th.
In a memo published online, Amazon CEO Andy Jassy revealed that after talks and reviews the company had come to the difficult decision to make more reductions – the majority of which will be in their Amazon Stores and PXT organizations.
“I are deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted,” he wrote. “We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support.”
The online giant, which employs approximately 1.5 million people across the world, gave no further indications of where the layoffs would land.
The news, however, was somewhat expected, with Jassy revealing late last year that layoffs were on the agenda due to the changing and unpredictable economic landscape.
“To those impacted by these reductions, I want you to know how grateful I am for your contributions to Amazon, and the work you have done on behalf of customers,” added Jessy. “You have made a meaningful difference in a lot of customers’ lives.”
Sector cuts and job losses
And it’s the same story across the tech sector, with yet more organizations making the decision to cut staff.
Earlier this week, Salesforce announced their plans to lay off around 10% of their employees with an eye to complete all staff restructuring by 2024.
In November of last year, Meta also revealed their intentions to cut 13% of their staff base, representing around 11,000 employees out of a global total of 87,000.
According to a report from Insight Global, three in four American workers are worried about losing their job in the current economic climate, with 49% of managers more worried about job cuts than their non-management colleagues.
"It's unfortunate we're already seeing some companies turn to mass layoffs because I believe layoffs should be the absolute last resort," says Bert Bean, CEO of Insight Global.
"Instead, I encourage leaders to consider other solutions, such as building a plan that avoids layoffs and helps you grow through a recession. Get your employee base executing on that, because when you bounce back from a recession, you'll need your people more than ever."