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Amazon is cutting another 9,000 more jobs in divisions including Twitch and AWS

By Kenny Yeo - on 21 Mar 2023, 9:46am

Amazon is cutting another 9,000 more jobs in divisions including Twitch and AWS

The Amazon Spheres at Amazon HQ in Seattle. (Image source: Wikipedia)

In a memo sent out to employees on Monday, Amazon CEO Andy Jassy told workers that the company would be laying off an additional 9,000 workers

This is on top of the 18,000 job cuts that were announced just months ago, making this Amazon's biggest pullback ever.

Amazon, which employs over 1.5 million people worldwide, said the axe would fall mostly on AWS, Twitch, and the company's advertising and human resources departments.

The company is clearly predicting that its clients will be spending less on cloud services soon. 

And as for Twitch, viewership has unsurprisingly fallen since the pandemic and the way it splits its revenue with streamers has caused some of its top streamers to switch to rivals like YouTube.

In the memo, Jassy said:

However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount. The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole. 

He also addressed why these reductions weren't announced and made earlier with the 18,000 cuts.

Some may ask why we didn’t announce these role reductions with the ones we announced a couple 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. The same is true for this note as the impacted teams are not yet finished making final decisions on precisely which roles will be impacted. 

It sounds like this isn't the end of the job cuts at Amazon. And while the 27,000 job cuts sure sound like a lot, it is really just a fraction of the company's global workforce.

Amazon also said that it will support employees affected by this round of cuts with packages that will include "a separation payment, transitional health insurance benefits, and external job placement support."

Source: Amazon

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