CEO Andrew Jassy tells Amazon workers that layoffs will continue into 2023

Amazon employees can expect the current round of layoffs to continue into 2023, CEO Andrew Jassy said in a memo to workers.

The elimination of reportedly 10,000 positions, or 3% of Amazon’s workforce, began this week, but the culling will extend into early next year, Jassy said. He described the cuts as “the most difficult decision” he’s made in his 18 months as Amazon’s new chief executive.

“It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted,” he said in Thursday’s memo.

After a hiring spree during the pandemic when Amazon was dangling generous bonuses, raising pay for hourly and corporate staff alike, it suddenly finds itself bloated with more than 1.3 million employees worldwide.

“The economy remains in a challenging spot and we’ve hired rapidly the last several years,” Jassy said.

Amazon has initially targeted the cuts in the company’s Luna cloud-gaming service, Alexa divisions, which include devices, and it’s Lab126 arm, according to The Wall Street Journal. 

Employees in Amazon’s device and books units started to get pink slips on Tuesday, according to the group’s head, Dave Limp, who sent a message to employees on Wednesday.

Jassy said Amazon also offered voluntary severance packages to employees in its People, Experience and Technology (PXT) organization.

“We haven’t concluded yet exactly how many other roles will be impacted,” going forward, he said.

The mass layoffs come on the heels of poor financial results by Amazon and other Big Tech giants, which were described as a “horror show” by Wedbush analyst Dan Ives.

Amazon’s net income fell to $2.9 billion from $3.2 billion a year earlier. and its sales came in lower at $1.27.1 billion than Wall Street’s $127.46 billion forecast.

The company has also warned that it expects a weaker holiday season as inflation and a looming recession weigh on shoppers. Amazon’s founder and former CEO Jeff Bezos told CNN this week that consumers should put off big-ticket purchases like new cars, televisions and appliances to keep some “dry powder.”

Last month, Bezos advised companies to “batten down the hatches.”