Amazon CEO Andy Jassy confirms 9,000 further job cuts across AWS, Twitch and its advertising arm

Amazon CEO Andy Jassy has confirmed that its cloud division might be affected by its subsequent spherical of job cuts, with 9,000 workers across a number of enterprise models set to lose their roles over the approaching weeks.

In an e-mail to workers, revealed on the Amazon firm information web page, Jassy mentioned job cuts will have an effect on Amazon Web Services (AWS), its live-streaming service Twitch, the Amazon People Experience and Technology Solutions (PXT) division and its advertising arm.

The information follows Amazon’s announcement in January 2023 that it will be chopping 18,000 jobs across the corporate after quickly increasing its headcount throughout the Covid-19 coronavirus pandemic.

“Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” Jassy wrote.

“The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”

The e-mail goes on to clarify why the corporate is making one other spherical of job cuts so swiftly after those its introduced earlier this 12 months, with Jassy stating that this was right down to the truth that not all of its groups had accomplished their assessments of what roles needs to be lower.

“Rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,” he mentioned.

“The same is true for this note as the impacted teams are not just finished making final decisions on precisely which roles will be impacted. Once those decisions have been made (our goal is to have this complete by mid-to-late April), we will communicate with the impacted employees.”

News of the job cuts follows the information of Amazon’s hiring freeze, which the corporate confirmed in November 2022, and is known to have affected the staffing and productiveness of the AWS sustainability group.

It additionally comes sizzling on the heels of a number of quarters of slowing income development for AWS, which the corporate has attributed to a slowdown in enterprise cloud spending because of “tough macroeconomic conditions”.

The Jassy e-mail doesn’t element what number of jobs are anticipated to be misplaced from AWS immediately, however he closed out the missive by insisting that the job cuts may have no adverse bearing on its prospects.

“Being leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole – I believe the result of this year’s planning cycle is a plan that accomplishes this,” he added.

“I remain very optimistic about the future and the myriad of opportunities we have, both in our largest, businesses, Stores and AWS, and our newer customer experiences and businesses in which we’re investing.”

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