Amazon layoffs will continue into next year: CEO Andy Jassy

E-commerce giant Amazon will continue firings into the new year as the company goes through its annual review process to find out ways to cut costs, chief executive officer Andy Jassy said in a note to employees.

The company's annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments, Jassy said, adding employees who are getting laid off will be informed in 2023.

The Amazon chief said this year's review is more challenging due to weak economic conditions and rapid hiring over the last several years.

"Leaders across the company are working with their teams and looking at their workforce levels, investments they want to make in the future, and prioritizing what matters most to customers and the long-term health of our businesses," Jassy wrote in the note.

"We haven't concluded yet exactly how many other roles will be impacted (we know that there will be reductions in our Stores and PXT organisations), but each leader will communicate to their respective teams when we have the details nailed down," Jassy said.

The e-tail giant also announced a "voluntary reduction offer" for some employees in its People, Experience, and Technology (PXT) business.

The development comes a day after the Seattle-based online retailer officially announced layoffs across its devices and books businesses. According to reports, the company is planning to cut 10,000 jobs or around 3% of its workforce.

"I've been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we've made during that time (and we've had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic)," Jassy said.

"We are working to support those who are affected and trying to help them find new roles on teams that have a need; and in cases where that's not possible, we are offering packages that include a separation payment, transitional health insurance benefits, and external job placement support," he added.

Meanwhile, several Big Tech firms have announced layoffs in recent weeks. Social media behemoth Meta sacked 11,000 employees or 13% of its workforce last week. Prior to this, microblogging platform Twitter, which is now owned by Tesla CEO Elon Musk, has sacked 50% of its total workforce, including 90% employees in India. In October, software major Microsoft fired as many as 1,000 employees, or 1% of its workforce, in the third round of downsizing. Snap, the parent company of social media platform Snapchat, sacked 20% of its workforce.