The CEO of Amazon Andy Jassy on Monday announced 9,000 more jobs from the online retail giant, following the 18,000 jobs cuts in January. The latest cuts came after the company announced the elimination of 18,000 employees in January, as a part of major cost-cutting by the e-commerce giant. However, Andy Jassy stated that it was a difficult decision for them, but it was necessary for the long-term success of the company.
The second round of layoff will result in the cut-offs of 9,000 employees across departments such as AWS, People, Experience, and Technology (PXT), Advertising, and Twitch. In an announcement to the staff, CEO Andy Jassy stated that it was a tough decision for the company, but was necessary for the long-term success of the company. The decision came after the firing of 18,000 employees in January.
The moves came after several layoffs by the tech company, including Meta’s announcement of cutting 10,000 jobs. Jassy had initially informed some PXT employees of a voluntary reduction offer in November 2022 and stated that additional layoffs were to be anticipated in 2023. He had already indicated in January that 18,000 employments, mostly in PXT and Amazon Stores, will be eliminated.
Jassy wrote in the memo that not all teams had finished their analysis at the time the newly announced role reductions weren’t combined with the prior announcement. He also said that it is not decided precisely which roles and teams will get impacted, the company expects to complete this by the end of April.
According to the information, Amazon will offer assistance to workers who are laid off, including a severance payment, interim health insurance coverage, and outside job placement assistance. The business provided severance pay-outs totalling USD 640 million for the layoffs that occurred in December and January.
“Some may ask why we didn’t announce these role reductions with the ones we announced a couple of months ago. The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,” Jassy said. In the memo, Jassy also said that the company will still hire in some strategic areas.
In India, after a complaint by the Nascent Information Technology Employees Senate (NITES) terming the program to be illegal, the company has been summoned by the Pune Labour Commission over the voluntary selection program.
Amazon is no longer selling its newspaper and magazine subscriptions, starting this week. The subscribers were notified of the same earlier last week, and publishers were alerted about the move in December itself. The exact reason for the change has not been shared by Amazon, but one obvious explanation is that relatively few people are buying these subscriptions and it doesn’t make financial sense to continue to support them. Instead, Amazon wants publishers to add their content to its USD 9.99/month digital subscription program, Kindle Unlimited, which includes a bunch of magazines and access to one newspaper that is USA TODAY.
In January this year, when the company fired its 18,000 workforces globally, around one percent of the employees were fired in India too. Amazon reportedly has about 1 lakh employees in India, but the company had reduced the workforce by 1,000 employees in India. Amazon India also received an email, in which they were asked to meet the leadership team to get more clarity on the layoffs.
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