Amazon.com Inc. (AMZN.O) announced on Monday that it would cut another 9,000 jobs, adding to a wave of layoffs in the technology industry due to an uncertain economy.
In recent months, Amazon has cut 27,000 jobs or 9% of its 300,000-person workforce.
Amazon’s cloud and advertising departments, considered impregnable, are now being reduced.
After November cuts to Amazon’s devices, e-commerce, and HR departments, Twitch will also be affected. Amazon will decide on terminations by April.
Amazon lost 2%.
The decision follows a near-constant stream of technological layoffs at some of the world’s most valuable companies, including Microsoft Corp (MSFT.O) and Google Inc (GOOGL.O).
In what now looks like a premonition, Facebook’s parent Meta Platforms Corp (META.O) warned last week it would lose 10,000 employees this year, setting off a second round of layoffs for the industry following the removal of more than 11,000 employees in 2022.
“We are not shocked,” D.A. Davidson analyst Tom Forte wrote in a note, citing economic fears as a background to Amazon’s intentions.
Amazon CEO Andy Jassy explained the decision in a message to colleagues.
“Some may wonder why we didn’t announce these position reductions with those we announced a couple months ago,” he wrote. “Not all teams finished their analyses in the late fall.”
“Given the uncertain economy and near-term outlook, we have elected to cut our costs and staff.”
Amazon stated last month that consumers and cloud customers cutting spending might continue to hurt operational earnings in the current quarter.
Now, the firm has cut offerings like its employer virtual primary care.
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