Amazon to Cut 9,000 Jobs in Latest Round of Cost-Saving Measures

Amazon Distribution Centre in Sidney, BC

Amazon announced on Monday plans to eliminate about 9,000 more positions in the next few weeks, mostly in Amazon Web Services (AWS), PXT, Advertising, and Twitch, as part of the company’s cost-cutting measures.

The decision comes after the completion of the second phase of the company’s operating plan, which prioritizes investments that matter most to customers and the long-term health of their businesses, according to CEO Andy Jassy’s memo to employees today.

“This was a difficult decision, but one that we think is best for the company long term,” said Amazon’s CEO.

Amazon says its internal businesses evaluated what customers most care about and made re-prioritization decisions that sometimes led to role reductions, sometimes led to moving people from one initiative to another, and sometimes led to new openings where the company doesn’t have the right skills to match from its existing team members.

This initially led the company to slash 18,000 positions in January, and an additional 9,000 cuts after the completion of the second phase.

Amazon has stated that the impacted teams are not yet finished making final decisions on exactly which roles will be impacted. Once those decisions have been made, the company will communicate with the impacted employees and provide packages that include a separation payment, transitional health insurance benefits, and external job placement support, says Jassy.

Jassy emphasized that Amazon will still invest in the important long-term customer experiences that they believe can meaningfully improve customers’ lives and the company as a whole. The decision to cut jobs was made to be leaner while investing in the future of the business.

It’s unclear how many Canadian positions will be affected by these latest Amazon job cuts, but we likely will find out soon enough. The tech sector as a whole has been slashing jobs in cost-saving moves, while Apple has delayed bonuses and hiring but has yet to eliminate jobs on a mass scale like others.