Amazon CEO: More layoffs to come
Details: Jassy in his note said his executive team is in its annual planning process and that the process "extends into the new year."
- The review is "more difficult" due to the company's past rapid expansion and the current economic environment, he said.
- "[That] means there will be more role reductions as leaders continue to make adjustments," he wrote.
- "Those decisions will be shared with impacted employees and organizations early in 2023."
Zoom in: While his team hasn't determined exactly how many more people will be dismissed, Jassy noted that the company's "Stores" and "People, Experience and Technology" units would be impacted.
- The cuts under way impact workers in its Devices and Books departments, which make low margin products including Echo smart speakers.
The big picture: Amazon, like Meta and other tech companies, have to be more cautious when it comes to where they invest in growth because consumer spending has slowed from pandemic levels.
- Specifically, Amazon's twin pillar businesses — e-commerce and Amazon Web Services, its profit engine — have slowed down at the same time.
What to watch: Just as much attention is being paid to how tech leaders are treating employees during layoffs as the actual number of layoffs themselves.
- The communication and public post Thursday may serve to help clarify the direction of the company after chaos and anger reportedly started brewing inside the company this week over the way the layoffs were handled.
- Jassy in his note Thursday wrote that with the upcoming cuts, "each leader will communicate to their respective teams when we have the details nailed down."
- "[A]s has been the case this week, we will prioritize communicating directly with impacted employees before making broad public or internal announcements," he added.
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Editor's note: This story has been updated to clarify that Amazon confirmed that layoffs were underway and that the New York Times reported the number could be 10,000.