In a memo to staff on Monday, Amazon CEO Andy Jassy announced that more than 9,000 employees will be laid off in the coming weeks as the economy under President Joe Biden worsens.
The announcement comes just months after the CEO announced 18,000 job cuts in November that lasted through January, as reported by CNBC. The cuts mainly impacted workers in retail, devices, recruiting, and the human resources department.
“For several years leading up to this one, most of our businesses added a significant amount of headcount,” the memo read. “This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”
“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,” Andy Jassy explained.
Jassy said that the departments most affected will be Amazon Web Services, human resources, advertising, and Twitch live streaming businesses.
As previously reported by the DC Enquirer, Meta, the parent company of Facebook and Instagram, announced last week that it would be firing 10,000 employees, or 13 percent of its workforce, in an effort to cut costs and make the company more efficient.
“Meta is building the future of human connection, and today I want to share some updates on our Year of Efficiency that will help us do that,” Meta CEO Mark Zuckerberg wrote in a memo announcing the move. “The goals of this work are: (1) to make us a better technology company and (2) to improve our financial performance in a difficult environment so we can execute our long-term vision.”
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Amongst those affected will be the recruiting teams, as well as the company’s tech and business employees. In addition to the cuts, the CEO announced that he will be closing 5,000 open job listings.
“Here’s the timeline you should expect: over the next couple of months, org leaders will announce restructuring plans focused on flattening our orgs, canceling lower priority projects, and reducing our hiring rates,” Zuckerberg explained. “With less hiring, I’ve made the difficult decision to further reduce the size of our recruiting team. We will let recruiting team members know tomorrow whether they’re impacted.”
“We expect to announce restructurings and layoffs in our tech groups in late April, and then our business groups in late May,” he continued, adding, “In a small number of cases, it may take through the end of the year to complete these changes. Our timelines for international teams will also look different, and local leaders will follow up with more details. Overall, we expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired.”
“This will be tough and there’s no way around that,” he added.
The head of Meta went on to explain that following the restructuring of these teams, hiring and transfers would resume. The move by Zuckerberg is part of his “year of efficiency” in which he plans to make the company leaner in order to improve the company’s financial performance while maintaining or improving product quality.
“Flatter is faster,” he explained. “It’s well-understood that every layer of a hierarchy adds latency and risk aversion in information flow and decision-making. Every manager typically reviews work and polishes off some rough edges before sending it further up the chain. In our Year of Efficiency, we will make our organization flatter by removing multiple layers of management.”
With the announcement of layoffs from some of America’s biggest companies, the impact of the growing financial turmoil is apparent. The high inflation, growing interest rates, and devastating banking collapse have resulted in companies reassessing their financial future and in the process putting tens of thousands of Americans out of work.
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