Amazon has announced plans to cut another 9,000 jobs in the coming weeks, with reductions primarily affecting the Twitch, advertising, and cloud computing divisions like Amazon Web Services. CEO Andy Jassy has sent a memo to staff warning that final cuts won’t be finalized until mid-to-late April and that Amazon won’t inform affected workers until that point.
Jassy explains that the expanded layoffs follow a “second phase” of operational planning focused on trimming costs. Amazon has promised severance pay, transitional health insurance coverage, and help to find jobs elsewhere.
The job cuts are attributed to an “uncertain economy” and lingering doubts about near-future performance, with Amazon wanting to be “more streamlined” while still having the resources to invest in better experiences.
Last fall, rumors surfaced that the company would lay off 10,000 employees, but the company announced it would eliminate 18,000 jobs in January, with most of the cuts focusing on retail and recruiting. Amazon had already closed some of its physical stores and wound down some business units.
While the brand benefited from the shift to online shopping during the COVID-19 pandemic, it faced turbulence as people returned to pre-pandemic habits. This move is not exclusive to Amazon, as Meta said it would let go of another 10,000 workers after slashing 11,000 positions in the fall. However, Amazon is now cutting more aggressively than many others.
It is also notable that Twitch is part of the layoffs. The live streaming service thrived during the early pandemic, but Streamlabs and Stream Hatchet estimate that viewership has been on a steady decline since spring 2021, with demand for Twitch not as high as it was when people were stuck at home.
Amazon has confirmed the memo’s existence to Engadget following a report by CNBC. The company promises to provide affected workers with severance pay, and transitional health insurance coverage, and help to find jobs elsewhere.
