E-commerce behemoth Amazon.com has augmented its restructuring plans and will lay off 18,000 workers, higher than initially expected, the company said. Amazon stock edged down on the news Thursday.
The layoffs are higher than the 17,000 first reported late Wednesday and significantly greater than the 10,000 estimated in November.
The 18,000 cutbacks represent the largest at a major technology company thus far, and come on the heels of a planned reduction of roughly 8,000 jobs by software provider Salesforce.com. The layoffs also follow those of Meta Platforms , which plans to slash about 11,000 jobs,
Companies have been hit by a weakening economy and a sharp slowdown in digital ad spending, in addition to inflation and rising interest rates.
"This year's review has been more difficult given the uncertain economy and that we've hired rapidly over the last several years," Chief Executive Andy Jassy said in a blog post late Wednesday He later added: "Between the reductions we made in November and the ones we're sharing today, we plan to eliminate just over 18,000 roles."
Amazon Stock: Notices Go Out Jan. 18
Jassy said the company doesn't plan to notify the affected employees until Jan. 18. He noted that one of the company's employees leaked information of the layoffs. That forced Amazon to speak out on the matter, Jassy said. The Wall Street Journal reported the cutbacks earlier in the evening on Wednesday.
"We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted. However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me." Jassy wrote.
Seattle-based Amazon first acknowledged in November it planned layoffs. The layoffs will concentrate on its device business, which includes the company's line of smart speakers. They will also focus on recruiting and retail operations, the Journal said.
The Journal also said Amazon employed 1.5 million people. The bulk of those workers are in the company's vast network of warehouses.
Amazon stock dropped a fraction, closing at 83.10 on the stock market today.
