Amazon cutting 18,000 jobs, and reveals which areas are hardest hit
The retail behemoth becomes the latest tech giant to unveil painful cutbacks as the cost of living crisis eats into profitability.
Thursday 5 January 2023 11:09, UK
Why you can trust Sky News
Amazon has announced that it is cutting 18,000 jobs – the biggest round of layoffs in the company’s history with the UK understood to be affected.
In a note to employees, chief executive Andy Jassy confirmed that the consumer retail part of the business – including Amazon Fresh, Amazon Go and online stores – will be especially impacted by the cuts.
Sponsored link
Recommended byWhat is Outbrain
Those working in human resources may also be vulnerable as the workforce is reduced, he warned.
The layoff decisions, which Amazon will communicate starting 18 January, will largely impact the company’s e-commerce and human-resources organisations, he added.
The cuts amount to 6% of the company’s roughly 300,000-person corporate workforce.
It is understood jobs in the UK and Europe will be affected, PA has reported, but Amazon has not given details of how each country will be hit.
It represents a swift turn for a retailer that recently doubled its base pay ceiling to compete more aggressively for talent.
MORE ON AMAZON
The E-commerce site Amazon takes number one spot. Pic: AP
Amazon workers vote to strike at a UK depot for the first time
Pic: Amazon
Amazon offers ‘thanks’ to drivers via Alexa – just as it’s sued over withheld tips
TV remote control in the foreground, Video on demand screen in the blurry background, streaming
How Netflix, Disney+ and other streaming giants could change to stop Britons hitting cancel amid cost of living crisis
Related Topics:
Amazon
Amazon has more than 1.5 million employees around the world – with soaring inflation prompting consumers and businesses to cut back on expenditure.
Amazon declined to say how many redundancies are going to be made in the UK, how many people work in the UK and how many UK-based staff work the areas where job cuts are likely.
Mr Jassy added in the note that annual planning “has been more difficult given the uncertain economy” and the company has “hired rapidly over the last several years”.
Amazon began letting staff go in November from its devices’ division, with a source telling Reuters at the time it was targeting around 10,000 cuts.
