Amazon has confirmed that it is laying off 9,000 employees in its various business units, including Amazon Web Services (AWS), Twitch, and its advertising division. This is the latest round of layoffs for the e-commerce giant, which has been restructuring its businesses in recent years to focus on new areas of growth.
Amazon CEO Andy Jassy described the news as “a difficult decision, but one that we think is best for the company long term,” in the announcement.
The layoffs are part of Amazon’s efforts to streamline its operations and reduce costs. The company has been investing heavily in new businesses, such as healthcare and grocery delivery, which require significant resources. The layoffs are expected to help the company reduce its expenses and improve profitability.
Impact on AWS reflects slowdown in cloud spending
The majority of the layoffs will be in the AWS division, which provides cloud computing services to businesses. The division has been a major growth driver for Amazon in recent years, but it has also faced increasing competition from other players in the market, such as Microsoft and Google.
In addition to the layoffs, Amazon is also restructuring its Twitch division, which provides a live streaming platform for gamers. The company is reportedly consolidating its various game development studios under one umbrella, which could lead to further layoffs in the future.
Approximately 400 employees from the Twitch division were affected by this most recent layoff announcement.
The layoffs come at a time of increasing scrutiny for Amazon, which has faced criticism for its treatment of workers and dominance in various markets. The company has been accused of mistreating warehouse workers, using its market power to stifle competition, and failing to pay its fair share of taxes.
Amazon has defended its actions, arguing that it provides good jobs and benefits for its workers and that it is investing heavily in new businesses that will create more jobs in the future. The company has also pointed out that it faces intense competition in many markets and that it operates in a highly regulated industry.
Amazon: 27,000 jobs eliminated in 6 months
Despite the layoffs, Amazon remains one of the world’s most valuable companies, with a market capitalization of over $1 trillion.
With this round of layoffs, Amazon has eliminated 27,000 jobs since November 2022. Yet, the Wall Street response has been muted at best, with the AMZN stock trading down 1.24% today at close.
The layoffs are likely to have a significant impact on the affected employees, many of whom may struggle to find new jobs in the current economic environment. The company has said that it will provide severance packages and other support to help affected employees transition to new jobs.
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