Amazon CEO Andy Jassy recently announced plans to lay off an additional 9,000 employees in the coming weeks, on top of the previously announced layoffs that began in November and extended into January. According to CNBC, The latest round of layoffs primarily impacts Amazon’s cloud computing, human resources, advertising, and Twitch live streaming businesses.
Twitch CEO Dan Clancy stated that approximately 400 people would be let go. Amazon is looking to streamline costs and become leaner while still investing robustly in essential long-term customer experiences that can meaningfully improve customers’ lives and Amazon as a whole, Jassy said. The layoffs were considered during the second phase of Amazon’s annual budgeting process, referred to internally as “OP2.”
The cuts come as the company reckons with an economic downturn and slowing growth in its core retail business. Amazon’s global workforce swelled to more than 1.6 million by the end of 2021, up from 798,000 in the fourth quarter of 2019. Despite the layoffs, Jassy remains optimistic about the company’s largest businesses, retail, and Amazon Web Services, as well as other new divisions that continue to warrant investment.