Amazon launched its second round of layoffs, announced last month, on Wednesday. Starting with its cloud service and human resources departments, this next round of job losses will affect 9,000 people.
AWS, Amazon’s most profitable segment, is slowing sales growth, prompting the layoffs. AWS layoffs will begin in the US, Canada, and Costa Rica, according to the announcement. CEO Adam Selipsky and HR Head Beth Galetti informed affected staff of the layoffs early Wednesday.
In a CNBC-obtained memo, AWS CEO Adam Selipsky remarked, “It is a tough day across our organization.” “Difficult decision to eliminate some roles across Amazon globally, including within AWS, and conversations with impacted AWS employees started today, with notification messages sent to all impacted employees in the US, Canada, and Costa Rica,” he said.
Amazon announced 9,000 layoffs earlier.
We are working hard to treat everyone impacted with dignity and give many tools and touchpoints to help with this transition. In the memo to Amazonians, Selipsky added that packages include a separation money, transitional health insurance, and external job placement support.
CEO Andy Jassy announced 9,000 job layoffs in March, adding to the 18,000 disclosed in November and January. To minimize expenses, Amazon laid off numerous advertising unit employees on April 18.
Amazon stopped hiring, halted projects, and slowed warehouse development due to recession fears. In his message last month, Amazon CEO Andy Jassey noted that due to the uncertain economy and “uncertainty that exists in the near future,” Amazon has chosen to streamline.
Amazon, like Meta and Alphabet, increased recruiting during the pandemic to fulfill the demand from homebound Americans shopping online. The pandemic also boosted Amazon and other cloud providers’ AWS segment as companies, government agencies, and schools accelerated their cloud shift.
In November and January layoffs, the business fired nearly 18,000 workers.
In a tough economy, corporations have cut spending, restricting growth for AWS and ads. The corporation slashed costs by laying off workers. AWS teams were laid off earlier.
“Given [our] rapid growth, as well as the overall business and macroeconomic climate, it is critical that we focus on identifying and putting our resources behind our top priorities-those things that matter most to customers and that will move the needle for our business,” Selipsky adds in the memo. “In many cases this means team members are shifting the projects, initiatives, or teams on which they work; however, in other cases it has resulted in these role eliminations.”
“We are focused on continuing to innovate in the areas that matter most to our customers as we help them minimise expense, innovate rapidly, and transform their organisations,” Selipsky said.
Selipsky said job cuts outside North America will follow local protocols, including employee group meetings when required by law. Layoffs affected AWS recruiters and the “Just Walk Out” technology group.
The corporation laid off roughly 18,000 workers in November and January.
The first cuts hit recruiting, HR, retail, and devices teams. Since November, the HR group has experienced buyout offers and downsizing, which continued on Wednesday. In an email on Wednesday, HR head Beth Galetti acknowledged the impact on departing and continuing staff.
“These decisions are not taken lightly, and I recognize the impact it will have across both those transitioning out of the company as well as our colleagues who remain,” HR head Beth Galetti told Amazonians.
Amazon closing Halo.
On Wednesday, Amazon announced the closing of its Halo health and sleep tracker subsidiary. Amazon will stop supporting Halo services on July 31 and reimburse Halo device purchases from the past year. US and Canadian employees have been contacted, although the number is unknown.
The original Halo band, a fitness tracker with health monitoring and analytic services, started the Halo division in 2020. Halo View, a contactless sleep tracker, and Halo Rise, a smart alarm clock, followed.
Network Hype Team