Amazon plans to lay off 9,000 corporate and tech workers by the end of April, adding to the 18,000 roles it already cut late last year and this January, Andy Jassy, the company’s chief executive, said in a note to employees on Monday.
The new layoffs, which amount to less than 3 percent of its corporate work force, will target workers in some of Amazon’s most profitable divisions, which had previously been spared, including Amazon’s cloud computing business and advertising operations. Those two segments of the business are much higher-margin operations than Amazon’s core retail business, according to financial analysts and filings.
Mr. Jassy wrote that the annual planning session that the company’s leaders wrapped up last week had focused on streamlining costs and head count.
“The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole,” he wrote.
For more than a year, Mr. Jassy has been pursuing cost cuts at Amazon. The company rapidly added employees during the pandemic and put a priority on some projects that lacked obvious ways to become profitable. He has pulled back on expansion of the company’s warehouse operations, and paused work on the largest phase of Amazon’s planned second headquarters near Washington, D.C.
- A Growing List: Alphabet, Microsoft, Zoom and Meta are among the tech giants that have cut jobs amid concerns about an economic slowdown.
- Salesforce: The company said it would lay off 10 percent of its staff, a decision that seemed to go against the professed commitment of its co-founder and chief executive, Marc Benioff, to its workers.
- New Parents Hit Hard: At tech companies that spent recent years expanding paid parental leave, parents have felt the whiplash of mass layoffs in an especially visceral way.
- Tech’s Generational Divide: The recent cuts have been eye-opening to young workers. But to older employees who experienced the dot-com bust, it has hardly been a shock.
The company froze hiring last fall and by November had plans to lay off about 10,000 employees, a target that expanded to 18,000 in early January.
Amazon had about 380,000 corporate employees at the end of 2022, according to a person familiar with its work force.
Most of Amazon’s roughly 1.5 million employees are hourly workers who power its warehouse operations.
The tech industry is undergoing its largest contraction since the dot-com bust of the early 2000s. Nearly every major tech company has laid off workers. Last week Meta, the parent company of Facebook, announced plans to lay off about 10,000 employees, or roughly 13 percent of its work force, part of what its chief executive, Mark Zuckerberg, called a “year of efficiency.” It had already laid off 11,000 workers late last year.
At Amazon, last year the initial layoffs affected employees working on the Alexa voice assistant and devices, then they spread to other divisions, including teams working on plans for automated stores, drones and the company’s broader consumer retail business. Human resources employees — recruiters in particular — were affected as well.
In the latest quarter, which ended in December, Amazon reported almost no profit, driven in part by unexpected weakness in its cloud computing business.
Twitch, the livestreaming site popular with video gamers that Amazon bought in 2014, said it was laying off more than 400 people, about 22 percent of its total staff. In the uncertain economy, “user and revenue growth has not kept pace with our expectations,” Dan Clancy, Twitch’s chief executive, said in a blog post. Mr. Clancy took over as chief executive from Twitch’s longtime leader, Emmett Shear, last week.
Amazon’s share price was down a little more than 1 percent at the close of trading on Monday.
Mr. Jassy said that management had not yet determined the workers who would be laid off, but that it expected to do so by mid to late April. He said the company could still pursue some “limited hiring” in strategic areas.
Kellen Browning contributed reporting from San Francisco.