Amazon to cut more than 18,000 jobs as sales slow

Amazon is to cut more than 18,000 jobs, as it fights to save costs following slow sales. 

The redundancies, which include previous ones announced in November, are expected to affect employees working in its HR sector and shops including Amazon Fresh and Go.

The company, which employs 1.5 million people globally, said redundancies would be made in the European workforce but did not specify which countries would be affected.

In a statement to staff, c.e.o. Andy Jassy said the review had been “more difficult given the uncertain economy” and the company’s rapid growth in the workforce. 

The slowdown in growth has been attributed to a sustained dip in advertising revenues and customers saving money, as inflation and the cost of living continue to bite.

In November the company announced it was cutting a number of positions across its Devices and Books businesses, and confirmed a voluntary reduction offer for some employees in its People, Experience, and Technology organisation.

It had also paused its warehouse expansions due to over-hiring during the boom period of the pandemic. Initiatives including personal delivery robots were also shut down, and planned developments in the AI Alexa function were scaled back. 

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy continued. “These changes will help us pursue our long-term opportunities with a stronger cost structure. However, I’m also optimistic that we’ll be inventive, resourceful and scrappy in this time when we’re not hiring expansively and eliminating some roles.

“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year. We often talk about our leadership principle ‘Invent and Simplify’ in the context of creating new products and features. There will continue to be plenty of this across all of the businesses we’re pursuing. 

“But we sometimes overlook the importance of the critical invention, problem-solving and simplification that go into figuring out what matters most to customers (and the business), adjusting where we spend our resources and time, and finding a way to do more for customers at a lower cost (passing on savings to customers in the process). Both of these types of Invent and Simplify really matter.”

Jassy added that the team would be working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits and support with placing jobs.

Employees who are directly affected by the redundancies are expected to be told by 18th January.