Amazon CEO "Layoffs to Continue Until Next Year... Feeling the Need for Additional Cuts"

Voluntary Retirement Offers Proposed to Some Departments... Store and PXT Organization Downsizing Expected

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Global e-commerce company Amazon has announced a large-scale layoff plan involving about 10,000 employees and stated that workforce reductions may continue next year.

According to CNBC and other sources on the 17th (local time), Amazon CEO Andy Jassy sent a memo to employees saying, "The company is still drafting its annual operating plan, and layoffs will continue through 2023." While the current goal is to reduce 10,000 employees, it is interpreted that the scale may be adjusted depending on the company's situation.

CEO Jassy said, "We have not yet decided how many employees will be affected by the layoffs," but added, "There will likely be restructuring in the Store and PXT (People Experience and Technology Solutions) departments, and management feels the need for additional workforce reductions."

Amazon began accepting voluntary retirement applications from the 16th, marking the largest reduction in its history. According to documents obtained by CNBC, the departments offered voluntary retirement include Human Resources and Service. Those who accept retirement will be terminated from the company as of the 24th of next month.

Additionally, CNBC reported that layoffs have also started targeting employees in the Devices and Hardware departments, and Amazon's Alexa and Luna divisions will be significantly affected by this reduction.

Amazon plans to provide employees who accept voluntary retirement with 12 weeks of living expenses and job search support. Insurance coverage will also be maintained until the end of this year.

Amazon intends to release up to 10,000 employees through this restructuring. As of the end of last year, Amazon's total workforce was 1.6 million, an increase of 800,000 compared to 798,000 at the end of 2019.

CEO Jassy stated, "(The layoff decision) is undoubtedly the most difficult decision made so far," and added, "The management and I do not forget that this is not simply about eliminating positions but affects the lives of dedicated employees with emotions, ambitions, and responsibilities."