Amazon to Layoff 18,000 Employees, Largest Cut in Company History: 'We'll Be Inventive, Resourceful, and Scrappy' Amazon CEO Andy Jassy penned a memo to employees after the news leaked of the impending cuts at the company.

By Emily Rella

entrepreneur daily
Getty Images

As layoffs continue across the tech sector, it seems no company is set to be spared amid the possibility of an impending recession.

Such is the case with Amazon, which announced this week that the company will be laying off roughly 18,000 employees globally — the highest amount in company history.

"Leaders across the company have been 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," said Amazon CEO Andy Jassy in a company memo. "This year's review has been more difficult given the uncertain economy and that we've hired rapidly over the last several years."

The layoffs will affect multiple teams, but the Amazon Stores and People Experience and Technology Solutions (PXT Solutions) teams will be affected the most.

Jassy said that the company will be giving dismissed employees separation packages that include severance, transitional benefits with health insurance, and help with finding future employment.

He also acknowledged that news of the layoffs had been leaked to the public, which was why he chose to share the news this week instead of when layoffs are set to happen on January 18.

"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."

The news is not quite so surprising, as Jassy announced last November that layoffs would continue into "early 2023," though he did not specify the magnitude of the impending cuts.

"Companies that last a long time go through different phases," Jassy said. "They're not in heavy people expansion mode every year."

Amazon is coming off a rough Q3 2022, with operating income plummeting by $2.5 billion compared to $4.9 billion at the same time last year, and net income dropping by $2.9 billion in comparison to $3.2 billion during Q3 2021.

The company is expected to report its Q4 2022 earnings on February 3.

Amazon was down just over 49% year over year as of Thursday morning.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

Here's How Much Amazon's Typical Customer Makes, Plus How Much They Spend on the Platform Per Year

A retail snapshot from data company Numerator paints a picture of who shops at Amazon and where they usually spend their money.

Business News

The Infamous Diner Booth from 'The Sopranos' Finale Is Up for Auction — And Some Fans Are Livid: 'Let Future Generations Enjoy'

The booth is still in the restaurant and ice cream shop in New Jersey where the finale was filmed.

Growing a Business

The Truth About Achieving Exponential Growth in Business, Exposed

What's preventing your business from scaling exponentially? Learn about the factors, and see how you can achieve your desired results.


The Rules of SEO Are Changing — Here Are 5 Powerful Strategies to Help You Rank in 2024

Do you need help to rank well on Google due to new algorithm updates? Discover five SEO strategies that work in 2024.

Business News

Are You at Risk for Burnout? This Psychologist-Created Quiz Lets You Know in 5 Minutes

The burnout assessment tool was tested in seven countries using more than 10,000 survey responses.