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Amazon.com Inc. is laying off more than 18,000 employees — the biggest corporate workforce reduction in company history — in the latest sign that a tech-industry slump is deepening.
Chief Executive Officer Andy Jassy announced the move in a memo to staff on Wednesday, saying it followed the company’s annual planning process.
The cuts, which began last year, were previously expected to affect about 10,000 people. The reduction is concentrated in the firm’s corporate ranks, mostly Amazon’s retail division and human resources functions like recruiting.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” he said.
“These changes will help us pursue our long-term opportunities with a stronger cost structure.”
Though the prospect of layoffs has loomed over Amazon for months — the company has acknowledged that it hired too many people during the pandemic — the increasing total suggests the company’s outlook has darkened.
Eliminating 18,000 workers would be the biggest cut yet for tech companies during the current slowdown, but Amazon also has a far bigger workforce than its Silicon Valley peers.
It had more than 1.5 million employees as of the end of September, meaning the latest cuts would represent about 1% of the workforce.
At the time the company was planning its cuts in November, a spokesperson said Amazon had roughly 350,000 corporate employees worldwide.
Amazon joins other tech giants in making major cuts.
Earlier last week, Salesforce Inc. announced plans to eliminate about 10% of its workforce and reduce its real estate holdings.
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