Just as people were reeling from the first massive round of layoffs, Amazon announced the second layoff round that is expected to affect 9000 employees from departments like AWS, Twitch, Advertising and People, Experience, and Technology (PXT)
CEO Andy Jassy released a memo to the employees stating that although it was a difficult decision to let go of these many employees at once, it’s what needs to be done to ensure the long-term success of the company.
It seems like Amazon tried its best to keep as many people as possible, only letting go of those roles that no longer benefit the company in any way.
The announcement comes amidst the wave of back-to-back layoffs among popular tech companies such as Meta. A few months back, Amazon announced its first round of layoffs for 18,000 people, mainly from the Amazon Store and PXT departments. This number was, in turn, released after the initial layoff count of 10,000.
Although Amazon hadn’t released an official headcount back when the news first came out in November, the current headcount seems to be lower than both estimates.
While the estimated layoff numbers are released, the company and the impacted departments are yet to pick up the roles and people that will be let go. As per their calculations, it’ll be at least mid-April until they can decide on that.
Amazon’s promise to support the employees
Amazon also promises to support the employees that are being laid off as much as they can. Along with the separation payment they are required to pay, the company will also provide them with transitional health insurance benefits and help them get placed in a new role. And the past has proved that Amazon stays true to its promises.
To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company. It’s never easy to say goodbye to our teammates, and you will be missed.Andy Jassy, Amazon CEO
Jassy also addressed employees’ concerns about why these numbers and roles were not announced in the first round of layoffs. Adding to the memo, he wrote that all departments were not done analyzing which roles had to be discarded by the end of the fall, which was when the first layoff announcements were made. And the team didn’t want to rush into a decision that impacted thousands of lives.
For the layoffs in December, the company has already paid more than $640 million in severance packages.
That’s why the management adopted the approach of informing the employees as the decisions are made so that the affected people have the information as soon as possible, but at the same, the decision isn’t rushed.
The sudden job cuts
Amazon has one of the biggest workforces in the world, with more than 1.5 million employees, which is at least seven times greater than Alphabet’s workforce (who themselves had to let go of 12,000 employees). So it’s quite natural that Amazon’s workforce had to take one of the worst hits in the industry.
The lockdown forced people inside their homes, which made them rely on companies like Amazon for most of their needs, which in turn had to induct more employees to meet the increased demands. But now that things have gone back to normal, people aren’t spending as much on these services. And although it remains profitable, the company simply doesn’t need the extra hands anymore.