Amazon Stock Fell After 9,000 Layoffs, and More May Be Coming

Amazon Stock

Amazon Stock (NASDAQ:AMZN)

On Monday, online retail giant Amazon (NASDAQ:AMZN) announced yet another wave of layoffs that would affect the jobs of thousands of workers and indicated that it is considering even greater reductions in its workforce. As a result, Amazon stock declined.

Employees were informed in a letter by CEO Andy Jassy that the company plans to cut 9,000 jobs over the next several weeks. The AWS, advertising, Twitch divisions, and the Human Experience and Technical Solutions departments are the primary targets of the layoffs.

As a result of the expansion of the economy as a whole, Jassy stated that many of those different types of businesses “added a large number of personnel” in recent years. Despite this, management has been directed to become “more streamlined” and “leaner” through the year 2023 due to the growing unpredictability of the economy’s path.

The most recent wave of layoffs comes from an earlier statement in January that layoffs would affect 18,000 workers.

Some people may wonder why we didn’t disclose these position reductions simultaneously as the ones we revealed a few months ago. “The short answer is that not all teams were finished with their analyses in the late fall,” Jassy told the employees. “And rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so that people had the information as soon as possible,” Jassy said. The same may be said for this message since the impacted teams still need to make definitive judgments on which jobs will be affected.

The most recent evaluation needs to be finished by the middle to late part of April. When the most recent business evaluation has been completed, we will make any further announcements about necessary staff reductions.

During 2019 and 2021, Amazon’s overall workforce more than quadrupled, reaching a high of over 1.6 million employees. The workforce will have decreased to around 1.54 million by 2022.

Shortly after the news was made on Monday, Amazon stock dropped by 1.5%.

Featured Image: Unsplash @ yendeg

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About the author: I'm a financial journalist with more than 3 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.