Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles.Amazon CEO Andy Jassy in a letter describing the latest round of layoffs. About 5% of Amazon’s corporate workforce will be impacted.
Beyond Amazon: Salesforce, a tech company that helps businesses manage and automate sales, also announced they will be reducing their workforce by about 10%. In a letter to employees, Co-Chief Executive Officer Marc Benioff stated that customers are spending more cautiously, and said: “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”
Why It Matters: Many tech companies onboarded additional employees during the pandemic to keep up with demand. But as customers shift purchasing habits amidst an uncertain economy, many tech companies – like Salesforce, Facebook parent company Meta Platforms Inc., and Snap Inc. (parent company of the app Snapchat) – have made widespread layoffs. Amazon’s latest announcement is reportedly the largest among tech companies in recent months.
Amazon Layoffs to Hit Over 18,000 Workers, the Most in Recent Tech Wave (The Wall Street Journal)
Salesforce to Lay Off 10% of Workforce, Reduce Offices (The Wall Street Journal)
by Jenna Lee,