Amazon CEO informs employees the company plans to eliminate more than 18,000 jobs
SEATTLE (KDKA) - Amazon informed employees on Wednesday that they plan to eliminate more than 18,000 jobs.
In a letter from CEO Andy Jassy, the company informed employees of what he described the outcome of "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 business."
"Between the reductions we made in November and the ones we're sharing today, we plan to eliminate just over 18,000 roles," the letter to employees read. "Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations."
Amazon, along with several other tech companies, significantly ramped up hiring over the past couple of years due to the online shopping habits of people during the COVID-19 pandemic.
However, as vaccinations and treatments for the virus have become available, people have begun returning to pre-pandemic behaviors, such as shopping in person.
The return to that behavior saw Amazon's stock fall about 50% in the last year.
"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," Jassy's letter continued.
Affected staff will be informed beginning on January 18.