SAN FRANCISCO ― Amazon is to shed 18,000 jobs in the biggest round of cuts in its history as big tech companies brace for the global economic slowdown.
Andy Jassy, Amazon’s chief executive, confirmed the scale of the layoffs on Thursday morning, blaming the “uncertain economy” and over-hiring during the pandemic.
The online retailer said jobs would go across its “stores” business, which includes its online retail division and its bricks and mortar shops.
Digital sales have slowed since Covid restrictions eased, while the company’s newly launched high street shops have failed to crack the hold of traditional brands on shoppers.
It will also cut back on its internal technology teams. Mr Jassy also confirmed redundancies in its hardware business, which includes its Alexa-powered Echo smart speakers team, and its books division.
Employees will be told if their jobs are at risk on January 18. The cuts include teams in Europe, the company said.
Mr Jassy said companies were no longer “in heavy people expansion mode this year” amid the economic gloom.
He said the company would focus on “simplification” to figure out “what matters most to customers”.
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