Amazon to Slash 9,000 Jobs in Cost-Saving Move

Amazon to Slash 9,000 Jobs in Cost-Saving Move

291 views

In a bid to save costs, Amazon has announced that it will be cutting an additional 9,000 jobs. The move will primarily impact the company’s cloud computing and advertising divisions. This comes on the heels of Amazon’s decision to axe 18,000 jobs in January.

The online retail giant, which currently employs 1.5 million people worldwide, has not disclosed which countries will be affected. However, it has stated that the positions will be closed within the next few weeks. The decision to reduce the workforce has been attributed to the uncertainty surrounding the economy and the need for Amazon to streamline its costs and headcount.

According to Andy Jassy, the company’s CEO, the move is a “difficult decision,” but it will ultimately benefit the company in the long term. He acknowledged that Amazon’s various business divisions had been adding roles in recent years. However, given the current economic climate and the unpredictable future, the company has deemed it necessary to cut back on its workforce.

The pandemic has had a significant impact on Amazon’s sales, with the company experiencing a boom during the lockdowns when customers were stuck at home. However, the recent cost of living crisis has led to a slowdown in sales, prompting Amazon to take action to reduce costs.

Meta and Other Tech Giants Also Implementing Cost-Cutting Measures

Amazon is not the only tech giant to take cost-cutting measures in recent months. Meta, which owns Facebook, Instagram, and WhatsApp, announced last week that it would be cutting 10,000 jobs. Other companies, including Google, have also been grappling with how to balance cost-cutting measures with the need to remain competitive.

Jassy expressed his regret over the job cuts, stating that it is never easy to lose employees. He went on to thank those impacted by the reductions for the work they had done on behalf of the company and its customers.

In addition to cloud computing and advertising, another area that will see job cuts is Twitch. The popular live-streaming platform, which Amazon acquired for $1 billion in 2014, is a hub for content including gaming and music. The move comes shortly after Emmett Shear announced that he would be stepping down as Twitch’s CEO after 16 years in the position.

In conclusion, Amazon’s decision to cut 9,000 jobs is a cost-saving measure aimed at streamlining the company’s operations. The move will primarily impact the company’s cloud computing and advertising divisions, and it is set to take effect within the next few weeks. While job cuts are never easy, Amazon believes that this measure is necessary given the current economic climate and the need to remain competitive in the long term.