Global Courant 2023-04-26 20:50:28
Amazon began laying off some employees in its cloud computing and human resources departments on Wednesday.
Amazon Web Services CEO Adam Selipsky and Human Resources Director Beth Galetti sent notes to executives in the US, Canada and Costa Rica informing them of the job cuts.
“It’s a tough day in our organization,” Selipsky wrote in the memo.
The layoffs are part of the previously announced job cuts that are expected to affect 9,000 workers. Last week, Amazon laid off some employees in its advertising unit, and it has let go of staffers in its video games and Twitch live-streaming units in recent weeks.
Amazon completed a separate round of cuts earlier this year that affected about 18,000 employees. Combined with the budget cuts this month, this marks the largest layoffs in Amazon’s 29-year history.
Amazon CEO Andy Jassy has aggressively cut costs across the company as the e-retailer anticipates an economic downturn and slowing growth in its core business. Amazon froze hiring of its corporate staff, halted some experimental projects, and delayed warehouse expansion.
By announcing layoffs in advertising and AWS, Jassy has shown that two of Amazon’s largest and most profitable companies are not immune to the cost cuts. Both AWS and advertising have experienced slowing growth in recent months as companies reduce spending in a challenging economic environment.
Some teams within AWS were included in the earlier round of layoffs. A portion of Wednesday’s cuts is expected to end up with AWS’s professional services division, which helps customers troubleshoot their cloud infrastructure, according to a current employee, who asked to remain anonymous because they were not authorized to comment on the matter. to speak .
The workforce at AWS skyrocketed during the pandemic, proving to be a huge boon for Amazon and other cloud providers as businesses, government agencies, and schools accelerated their transition to the cloud.
“Given this rapid growth, as well as the overall business and macroeconomic environment, it is critical that we focus on identifying and deploying our resources behind our top priorities – those things that matter most to customers and that will move for our company,” Selipsky wrote in the memo. “In many cases, this has meant team members shifting the projects, initiatives or teams they work on, but in other cases it has resulted in these role eliminations.”
Amazon will announce its first-quarter results on Thursday after the bell. Investors will look for some insight into whether Jassy’s cost-cutting efforts have improved profitability and when Amazon executives expect AWS growth to accelerate again.
Shares of Amazon rose 3.2% in morning trading on Wednesday.
Here’s Selipsky’s full memo:
AWS team,
As you know, we recently made the difficult decision to cut a number of roles at Amazon globally, including within AWS. I wanted to let you know that conversations with affected AWS employees have begun today, with notification messages being sent to all affected employees in the US, Canada and Costa Rica. In other regions, we follow local processes, which may include time to consult with employee representatives and potentially result in longer timelines to communicate with affected employees.
It’s a tough day in our organization. I fully realize the impact on every person and family affected. We are working hard to treat everyone involved with respect and to provide a number of resources and points of contact to support this transition. This also includes packages with divorce benefits, transition benefits, health insurance and external employment services.
To those we say goodbye to today, thank you for all you have done for this company and our customers. I am really grateful. To all AWS builders, thank you for your compassion and empathy for your colleagues.
Both the size of our company and the size of our team have grown significantly in recent years, driven by customer demand for the cloud and the unique value AWS provides. This growth has been rapid because we have moved as quickly as possible to build what customers need. Given this rapid growth, as well as the overall business and macroeconomic environment, it is critical that we focus on identifying and deploying our resources behind our top priorities – those things that matter most to customers and that are the needle for us. company will move. In many cases, this means that team members shift the projects, initiatives or teams they are working on; however, in other cases it has resulted in these role eliminations.
The fundamentals and outlook for our business are strong and we are very confident in our long-term prospects. We’re the leading cloud provider across a wide range of benchmarks, from our feature set to our security capabilities to our operational performance. We are focused on continuing to innovate in the areas that matter most to our customers as we help them minimize costs, innovate quickly and transform their organizations.
I am optimistic about the future. We tackle our opportunities and our challenges and continue to change the world.
Thank you,
Adam
And here’s Galetti’s full memo:
PXT Team,
As Andy shared a few weeks ago, leaders across the company have been working closely with their teams to decide what investments to make for the future, prioritizing what matters most to customers and the health of our businesses in the world. long-term. Given PXT’s close working relationship with the company, these shifts also affect our OP2 plans and we have made the difficult decision to cut additional roles within the PXT organization.
Today we shared this update with our PXT colleagues whose roles were impacted in the US, Canada and Costa Rica. In other regions, we follow local processes, which may include time to consult with employee representatives and potentially result in longer timelines to communicate with affected employees.
These decisions are not taken lightly and I recognize the impact it will have on both those who leave the company and our colleagues who stay.
To those who are leaving, I want to thank you for your contributions. You helped build Amazon into the extraordinary company it is today, and we’re here to support you through this difficult time. In the US, we offer 60-day no-work transition packages with full pay and benefits, plus additional weeks of layoff depending on employment, severance pay, transition benefits, and outside employment support.
Although this moment is difficult, I remain energized by the important work ahead. Together, we’re building a workplace that changes the way Amazonians invent and deliver for customers. From making it easier for employees to find the information and help they need, to expanding our benefits, I’m proud of the progress we’ve made over the years. This meaningful work is a direct reflection of PXT’s perseverance, resilience and leadership. Thank you.
Please know that the entire PXTLT, including myself, is here to answer your questions and support you.
-Bet
