Amazon plans to remove about 9,000 more positions, chiefly in AWS, advertising, Twitch and its PXT people organisation, chief executive Andy Jassy said in a 20 March staff memo. These are additional to the 18,000 reductions announced in January.
Historical Amazon premises, photographed in 2017. Photo © Tony Webster (2018), “Amazon Fulfillment and Trucks Sign – Shipping Center in Shakopee, Minnesota”. CC BY 2.0. Resized; responsive crops.
The second phase of annual operating planning is complete, but teams are still selecting affected roles. They aim to finish by mid-to-late April, then notify employees or, where applicable in Europe, their representatives.
Jassy said some teams hadn’t completed their assessments in late autumn, explaining the staggered announcements. The review also involves moving staff between initiatives and opening positions where existing teams lack the required skills. Limited hiring will continue in selected strategic areas.
AWS brings a profitable business into the cuts. In results released on 2 February, AWS reported fourth-quarter 2022 revenue of US$21.4 billion, up 20% year on year, and $5.2 billion in operating profit. North America and International both recorded operating losses.
Advertising services revenue also rose, reaching $11.6 billion, up 19% from a year earlier. That sales line isn’t a separately reported operating-profit segment, so it can’t establish advertising’s profitability.
Together, the records place growing businesses and profitable AWS inside the headcount review. How the 9,000 reductions will be divided remains undisclosed; the records establish no link between a specific financial metric and any unit’s allocation.
Related: Amazon’s February results.
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