Amazon CEO Andy Jassy announced the company's plan to cut more than 18,000 jobs, a larger number than initially anticipated, in a blog post shared on Tuesday (January 4).
The announcement was made after the Wall Street Journal had previously reported on the cuts, which Jassy said was due to employees leaking the information.
“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” Jassy wrote. “However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me.”
The layoffs are expected to mostly affect employees in Amazon stores, as well as People, Experience, and Technology (PXT) groups.
Amazon is among several tech companies continuing to make cuts in 2023 in preparation for an extended economic downturn, CNBC reports.
Salesforce announced its plans to reduce its workforce by 10%, which would cut more than 7,000 employees.
Both Salesforce and Amazon have publicly acknowledged hiring too rapidly during the COVID-19 pandemic, with Amazon specifically stating the mass hirings were made to meet the growing demand of online ordering at the time.
Amazon was reported to have employed a total of 1.54 million people by the conclusion of the third quarter of the 2022 fiscal year.
Jassy had previously announced the company's intention to eliminate roles in November 2022, which CNBC reported was expected to include around 10,000 employees at the time.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “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.”
Amazon intends to notify the employees affected by the layoffs beginning on January 18.