Amazon’s Layoff Storm Continues: 9,000 More Jobs Cut from AWS, Twitch, and Advertising Units

Amazon’s Layoff Storm Continues: 9,000 More Jobs Cut from AWS, Twitch, and Advertising Units

Table of Content

In this piece, we’ll delve into the motives behind Amazon’s recent announcement to cut an extra 9,000 jobs, raising the overall layoff count to 27,000 since the start of the year. 

We’ll also explore the impacted departments and the company’s reasoning for this action.

Key Takeaways:

  • Amazon plans to slash an additional 9,000 positions in the upcoming weeks.
  • AWS, Twitch, and Advertising divisions to be impacted
  • These layoffs follow the earlier 18,000 job cuts in January
  • Economic uncertainty cited as a primary reason for the layoffs
  • Layoff decisions were staggered due to ongoing team analyses

Massive Job Cuts in the Tech Sector:

This year has seen an unprecedented number of layoffs in the tech industry, with nearly 140,000 job cuts announced, as per Layoffs.fyi. 

Amazon’s decision to lay off an additional 9,000 employees comes just months after the company announced its largest layoffs in history, with 18,000 jobs eliminated in January.

The Impact on AWS, Twitch, and Advertising

Amazon CEO Andy Jassy revealed in a memo that the latest job cuts would impact the Amazon Web Services (AWS), Twitch, and Advertising divisions. 

While AWS has been a significant moneymaker for Amazon, the company has experienced a slowdown in cloud infrastructure spending, prompting a reevaluation of resources.

Why Amazon’s Layoffs Were Staggered

Some may question why Amazon didn’t announce all the layoffs at once. 

According to Jassy, not all teams had completed their analyses by the end of the fall. 

The company chose to take a staggered approach to ensure proper diligence and to keep employees informed as soon as possible.

Economic Downturn Influencing Decisions

The uncertain economic climate has played a significant role in Amazon’s decision to cut jobs. Jassy cited the need to streamline costs and headcount in light of these uncertainties. 

Despite the layoffs, Amazon still plans to conduct limited hiring in strategic areas.

Conclusion

Amazon’s decision to lay off a total of 27,000 employees this year has sent shockwaves through the tech industry. 

The economic downturn and the need to streamline costs have been cited as the primary reasons behind these job cuts. 

Affected divisions include AWS, Twitch, and Advertising, all of which face challenges due to changing market dynamics. 

As the tech sector grapples with these massive layoffs, it remains to be seen what the long-term impact on the industry will be.

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Written by

Alexander Sterling

Alexander Sterling

Alexander Sterling is a renowned financial writer with over 10 years in the finance sector. With a strong economics background, he simplifies complex financial topics for a wide audience. Alexander contributes to top financial platforms and is working on his first book to promote financial independence.

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Judith

Judith

Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.