Layoffs Will Continue Till Next Year, Says Amazon CEO Andy Jassy

The US e-commerce behemoth is undergoing an annual review process to determine where it can save more money

CEO Andy Jassy said that as they weigh job cuts, leaders at the company will prioritize what matters most to customers and the company's long-term health. ( Image Source :Getty )

Amazon CEO Andy Jassy said that the mass layoffs that began in Amazon's corporate ranks this week would extend into next year, according to an Associated Press (AP) report.

In a note sent to the company’s workers in the devices and books divisions, Andy Jassy said that there will be reductions in certain divisions as the company goes through the annual review process, which will continue into next year. He added that Amazon hasn't concluded how many other jobs will be impacted. 

He said that as they weigh job cuts, leaders at the company will prioritize what matters most to customers and the company's long-term health. The company memo also noted that some employees are being given voluntary buyout offers.

Jassy wrote, “I've been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we've made during that time (and, we've had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic).”

The e-commerce behemoth is undergoing an annual review process to determine where it can save more money. Jassy said this year's review is “more difficult” due to the economic landscape and the company's rapid hiring in the last several years. On Tuesday, Amazon notified authorities in California that it would lay off 260 corporate workers at various facilities. 

Many other tech companies have also been trimming their workforce amid concerns about an economic slowdown. Meta said last week it would lay off about 13 per cent of its workforce. Elon Musk’s Twitter has slashed the company's workforce in half.

Amazon is offering severance packages for employees who leave the company. Although details of the packages haven’t been publicly disclosed. The company has 1.5 million employees worldwide. Most of them employed as hourly workers.