Amazon announced the start of job cuts, which is expected to affect over 18,000 employees, making it the largest round of layoffs in the company’s history. The cuts were confirmed in memos sent by Doug Herrington, the worldwide retail chief, and Beth Galetti, the head of human resources. The human resources and stores divisions are likely to be the most impacted. The company plans to notify affected employees in the U.S., Canada, and Costa Rica by the end of the day. The layoffs come as part of Amazon’s efforts to improve its cost structure and prioritize investments in key growth areas.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Amazon begins job cuts | Reduction of jobs in corporate workforce | More streamlined and cost-efficient operations | Improving cost structure and investing in customer experience |
| Largest round of layoffs in company history | Significant reduction in workforce | Potential changes in company culture and structure | Economic downturn and slowing growth in core retail business |
| Layoffs impact human resources and stores divisions | Job cuts primarily affect these departments | Potential restructuring and reorganization of affected divisions | Lowering cost to serve and improving efficiency |
| Layoffs follow period of rapid head count growth | Transition from expansion to downsizing | Focus on optimizing operations and reducing costs | Economic challenges and need to improve cost structure |
| Layoffs accompanied by cost-cutting measures | Reduction of network and delivery costs | Improved selection, pricing, and delivery speeds | Lowering cost to serve and funding innovation |
| Support provided for affected employees | Resources and assistance during transition | Smooth transition into new employment opportunities | Mitigating the impact of job loss and maintaining employee morale |