On April 5, 2021, Amazon CEO Andy Jassy announced that the company would be cutting an additional 9,000 jobs. The layoffs will affect Amazon’s ‘corporate’ and ‘operational’ divisions and are part of an effort to streamline operations. The cuts represent 0.5% of Amazon’s global 1.2 million strong workforce.
The move comes as Amazon is dealing with turmoil caused by the coronavirus pandemic. Due to the sudden spike in orders, the company has struggled to meet customer delivery expectations and increase its workforce to keep up with demand. This has resulted in the company making cost-saving moves such as layoffs, restructuring, and closing down unprofitable businesses in an effort to remain streamlined and cost-efficient.
In a statement, Jassy expressed sorrow at the decision, saying “It’s not easy for a company to have to let go of colleagues, particularly in these times”. Amazon will be providing generous severance packages for all the workers that are being laid off, along with assistance in the form of resume and job search assistance.
The move represents a shift from the company’s ‘growth-at-all-costs’ strategy, as well as its previous stance of investing heavily in new technologies and research and development. While the cuts are likely to result in short-term savings, they also suggests that Amazon is prioritizing efficiency over growth.
Overall, the decision to cut 9,000 jobs is yet another reminder of the tough times that Amazon is facing right now due to the very real and tangible impacts of the COVID pandemic. While it is never easy to let go of long-term employees, the move is seen as necessary by the company in order to survive these economic difficulties and remain competitive in the current market.
