Jan 5, 2023
Amazon to Slash More Than 18,000 Jobs Transcript
Amazon is now saying it is laying off more than 18,000 employees, which is significantly more than previously planned. Read the transcript here.
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Speaker 1 (00:00):
We now have confirmation [inaudible 00:00:02] from Amazon, a memo from the CEO to staff, that they will be cutting more than 18,000 jobs, as mentioned much more than previously expected going into the end of the year. There was an indication that about 10,000 jobs would be cut, but this far more than expected and therefore indicating to many that this is a latest sign the tech slump deepening. The cuts again, we’re told in the memo from the CEO, will be mainly in the corporate ranks. Retail division and human resources were also told that affected staffers will be taken aside beginning January 18th and various issues such as severance and assistance in finding other jobs will then be discussed.
The CEO, Andy Jaffe also said in a memo that this is part of the company’s annual planning process. “Amazon has weathered, uncertain and difficult economies in the past.” He said they will continue to do so and “these changes will help it pursue our long-term opportunities with a stronger cost structure.”
Cost cutting, really the name of the game for so many companies as we enter 2023. This the biggest tech cuts we’ve seen in Silicon Valley and if you drop into the Bloomberg you can see that’s mainly because the company employs so many. A staff total of about one and a half million as of last year. And this is also a company that admitted it over hired, brought on too many people during the pandemic when its stock really took off. But during the past year, the stock has come under considerable pressure with a sharp slowdown in e-commerce growth and various headwinds and concerns about a recession.
We should also point out that the memo chided certain staff members who may have leaked the news before the memo was able to go out. The Wall Street Journal did have a story earlier that caused shares to rise about 2% after hours. An indication that Wall Street investors may be very receptive to this sign of greater cost cutting in lieu or actually in consideration of much tougher times ahead.