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Amazon To Cut 18,000 Jobs As It Moves To Reduce Costs

Amazon To Cut 18,000 Jobs As It Moves To Reduce Costs
January 5, 2023

The company added that the cost of the job losses will come from its shops including Amazon Fresh and Go and its human resources division.

Amazon is set to cut at least 18,000 jobs as it tackles a downturn in the world economy.

 

This will be the largest number of job cut in the firm's history, as the company battles to save costs.

 

According to Sky News, the online giant which employs 1.5 million people globally, did not say in which countries the job cuts would be done but said they would include Europe.

 

The company added that the cost of the job losses will come from its shops including Amazon Fresh and Go and its human resources division.

 

According to the report, its boss Andy Jassy cited the "uncertain economy" for the cuts, saying it had "hired rapidly over several years."

 

"We don't take these decisions lightly or underestimate how much they might affect the lives of those who are impacted," he said in a memo to staff.

 

He said the announcement had been brought forward due to one of the firm's employees leaking the cuts externally.

 

"Companies that last a long time go through different phases. They're not in heavy people expansion mode every year," he added.

 

Amazon is the latest big technology firm to unveil major layoffs as the cost of living crisis sees customers cut back on spending.

 

Employees affected by the cuts are expected to be told by January 18.

 

The move comes after the technology giant said last year that it would reduce its headcount without saying how many jobs would be cut.

 

The company had already stopped hiring new staff and stopped some of its warehouse expansions, warning it over-hired during the pandemic.

 

It has also taken steps to shut some parts of its business, cancelling projects such as a personal delivery robot.

 

Mr Jassy said the company chose to go public with the announcement before informing staff because of a leak.

 

The company has been battling against the return to in-person shopping as well as a cut back in consumer spending due to the rising cost of living.

 

Amazon's stock fell about 50 per cent last year.