Amazon layoffs will continue into next year, CEO says - ABC News

Amazon's layoffs volition proceed into the caller year, CEO Andy Jassy said successful a caller memo Thursday.

The announcement comes a time aft the tech institution began layoffs of workers connected its devices team, which focuses connected products similar its voice-operated Alexa, according to a memo from Dave Limp, elder vice president of devices and services.

"This year's reappraisal is much hard owed to the information that the system remains successful a challenging spot and we've hired rapidly the past respective years," Jassy said Thursday.

Decisions connected the latest Amazon relation reductions volition beryllium shared successful aboriginal 2023, Jassy said. It is not yet definite however galore jobs volition beryllium impacted, though the reductions volition interaction Amazon's stores and People Experience and Technology Solutions organizations, helium said.

The determination adds the institution to a database of large tech firms that person imposed occupation cuts successful caller weeks, including Facebook-parent Meta and Twitter.

Limp's memo did not supply details connected the standard of the layoffs, but the occupation losses get astatine a clip erstwhile the institution typically expands its workforce during the engaged vacation season.

"We proceed to look an antithetic and uncertain macroeconomic environment," Limp's memo said. "After a heavy acceptable of reviews, we precocious decided to consolidate immoderate teams and programs."

"In cases wherever employees cannot find a caller relation wrong the company, we volition enactment the modulation with a bundle that includes a separation payment, transitional benefits and outer occupation placement support," the memo added.

The layoffs travel large occupation cuts astatine different large tech firms, arsenic manufacture titans retreat from record sales attained during the pandemic, erstwhile billions crossed the satellite were forced into isolation. Customers stuck astatine location came to trust connected transportation services similar e-commerce and virtual connections formed done societal media and videoconferencing.

However, persistent recession fears, rising involvement rates and a displacement backmost toward a pre-pandemic manner person crunched the tech sector.

Andy Jassy, CEO of Amazon.Com Inc., speaks during the Bloomberg Technology Summit successful San Francisco, June 8, 2022.

David Paul Morris/Bloomberg via Getty Images

Under caller proprietor Elon Musk, Twitter laid off astir fractional of its 7,500-person workforce, citing losses of astir $4 cardinal each day.

Days later, Meta announced that it would chopped astir 11,000 employees, which amounts to astir 13% of its workforce. The institution reported a 2nd consecutive 4th of declining income past month.

Lyft, Netflix, Coinbase, Salesforce, Microsoft and Snap are among a slew of different tech companies that person chopped workers this year.

Amazon logo seen astatine the entranceway to Amazon's Shannon Building successful Dublin.

Photo by Artur Widak/NurPhoto via Getty Images

The tech-heavy Nasdaq has fallen much than 25% successful 2022. Shares successful Amazon are down 18% this year.

Third-quarter earnings released by Amazon past period fell abbreviated of expert expectations for revenue, sending the banal down 13% successful extended trading connected the time of the announcement.