“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said in his note. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles. Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year.”
Amazon accelerated hiring when it boomed during the COVID-19 pandemic as shoppers vastly turned to e-commerce, but growth for the company has slowed and disappointed Wall Street expectations since shoppers have shifted back to in-person shopping and as consumers face tough economic conditions. The retailer last year also reported a disappointing holiday shopping forecast that failed to meet expectations, CNBC reported.
Amazon is the latest in a string of tech companies to announce layoffs in the past year. Meta (the parent company of Facebook) announced in November that it would lay off 11,000 workers. Twitter also laid off thousands of its employees after it went through a restructuring following a $44 billion purchase by Tesla CEO Elon Musk. Salesforce, the cloud-based software company, also this week also announced it would cut about 10% of its workforce.