Amazon says it will cut over 18,000 jobs, more than initially planned

Amazon specifically acknowledged that it had added workers too quickly in warehouses as consumers shifted to online ordering.

Boxes move along a conveyor belt at an Amazon fulfillment center in Raleigh, N.C., on Prime Day, June 21, 2021.Rachel Jessen / Bloomberg via Getty Images file

Amazon said Wednesday it will cut over 18,000 jobs, a bigger number than the e-retailer initially said it would be eliminating last year.

The Wall Street Journal reported on the cuts earlier, which Amazon said pre-empted its planned announcement.

“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” CEO Andy Jassy wrote in a memo to employees that the company published on its blog. “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.”

Tech companies are picking up in 2023 where they left off last year, preparing for an extended economic downturn. Salesforce said on Wednesday it would reduce headcount by 10%, impacting over 7,000 employees. Both Amazon and Salesforce admitted that they hired too rapidly during the pandemic.

Amazon specifically acknowledged that it had added workers too quickly in warehouses as consumers shifted to online ordering.

In November, Jassy said Amazon would eliminate roles, including at its physical stores and in its devices and books divisions. CNBC reported at the time that Amazon was looking to lay off around 10,000 of its employees. Now the number is higher.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “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.”

Amazon plans to inform employees who will lose their jobs starting Jan. 18, Jassy wrote, noting that most cuts will come in the stores and People, Experience, and Technology (PXT) groups.

Many tech companies have cut jobs as the economy sours. Amazon’s layoffs of more than 18,000 employees would represent the highest number of people let go by a tech company in the past few months, according to tallies released on Layoffs.fyi, a website that tracks the events as they surface in media reports and company releases.

The trend has affected companies such as Amazon and others that have acknowledged they grew too quickly in many cases. Facebook META 2.11%increase; green up pointing triangle parent Meta Platforms Inc. said it would cut more than 11,000 workers, or 13% of its staff, adding to layoffs at Lyft Inc., LYFT 3.33%increase; green up pointing triangle HP Inc. HPQ 1.76%increase; green up pointing triangle and other tech companies. On Wednesday, Salesforce Inc. CRM 3.57%increase; green up pointing triangle said that it was laying off 10% of its workforce. Co-Chief Executive Marc Benioff said the business-software provider hired too many people as revenue surged earlier in the pandemic. “I take responsibility for that,” he said.