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Amazon The company confirmed on Tuesday that it began laying off some employees in an ad as part of CEO Andy Jassy’s cost-cutting efforts.
According to a copy of the memo shared by an Amazon spokesperson, Paul Kotas, senior vice president of Amazon advertising, IMDb, and Grand Challenges, sent a memo to employees notifying them of the layoffs.
“Throughout our 2023 planning process, as Andy shared a few weeks ago, we have carefully prioritized our resources with the goal of maximizing customer benefits and long-term business health. ,” writes Kotas. “In the case of Ads, this process includes moving team members, slowing down or stopping certain programs, or reallocating resources by concluding that they do not have the right skills in place to address their priorities. As a result, we made a thoughtful decision about how best to move forward, which resulted in the removal of a small percentage of roles in the organization.”
It is not known how many people have been laid off in the advertising department. Jassy announced last month that Amazon was laying off 9,000 of her employees. This is in addition to her 18,000 job cuts already announced last November and she in January. Previous cuts were primarily focused on retail, devices, recruitment and HR groups.
Jassy said in March that the latest round will affect Amazon’s advertising, cloud computing, Twitch livestreaming and HR employees. Earlier this month, Amazon’s video game business also laid off about 100 employees.
Amazon is experiencing the biggest layoffs in its 29-year history after hiring massively during the Covid pandemic. The company’s global workforce grew from 798,000 in the fourth quarter of 2019 to more than 1.6 million by the end of 2021.
Jassy also gives a rough overview of the company’s expenses given the economic downturn and slower growth in its core retail business. Amazon has frozen the hiring of corporate employees, halted several experimental projects and slowed the expansion of its warehouses.
By announcing the layoffs of advertising and Amazon Web Services, Jassy showed that two of Amazon’s biggest and most profitable businesses aren’t immune to cost cutting.
Here is the full note from Kotas:
Hey, guys,
We wanted to let you know that this morning we took the difficult step of notifying Amazon Ads team members affected by role reductions in the US and Canada. We are following local policies that require additional time and process steps. Communicate with employees in other affected regions according to these policies and timelines. We recognize that this news is important to all team her members, so we wanted to provide additional context on the decision to remove the role and how we are supporting our affected colleagues. thinking about.
As Andy shared a few weeks ago, throughout the planning process for 2023, we have been meticulously prioritizing our resources with the goal of maximizing the benefits for our customers and the long-term health of our business. rice field. For advertising, this process may involve moving team members, slowing down or stopping certain programs, or reallocating resources by concluding that they do not have the right skills to address their priorities. . As a result, a very small percentage of organizational roles have been removed as a result of deeply considered decisions about how best to move forward.
Importantly, I would like to acknowledge and thank my affected colleagues for the work they have done on behalf of Amazon Ads customers. The immediate focus is to support team members through this difficult transition, and to this end, employees whose roles have been eliminated will have personal follow-up meetings with team leaders to discuss next steps. Affected employees will receive full pay and benefits for the next 60 days (90 days for New York and New Jersey), plus additional benefits to help them find their next role outside of Amazon. receive retirement packages and relocation support.
Looking ahead, we are very optimistic about the opportunities that lie ahead, even in an uncertain economic environment. We have built a strong foundation. Personally, I am very excited about the inventing and building that is happening across our organization. contact your team leader or MyHR If you have any questions,
Pole
clock: Watch CNBC’s full interview with Amazon CEO Andy Jassy on his message to investors, new AI tools, and stock prices.