New Delhi. Amazon on Wednesday began the second round of layoffs that the company announced last month. This new round of job cuts will affect around 9,000 employees across various departments, starting with its cloud services operations and human resources divisions.
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The layoffs come as Amazon Web Services (AWS), the company’s most profitable division, is reporting slowing sales growth. According to the notification about the layoffs, the job losses at AWS will be spread globally, beginning with personnel in the US, Canada and Costa Rica. Affected employees were informed of the layoffs early Wednesday by CEO Adam Selipsky and head of human resources Beth Galetti.
“This is a difficult day at our organization,” said AWS chief Adam Selipsky in an internal memo obtained by CNBC. “The difficult decision to eliminate certain roles at Amazon globally, including within AWS, and negotiations with affected AWS employees began today, with information messages sent to all affected employees in the US, Canada and Costa Rica,” he said.
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“We are working hard to treat all affected people with respect, and to provide multiple resources and touchpoints to assist in this transition. This includes packages that include a separate paid, transitional health insurance benefits and external job placement support,” Selipsky further wrote in the memo to Amazonian.
In March, CEO Andy Jassy announced 9,000 job cuts, in addition to the 18,000 already announced last November and January. On April 18, as part of this plan, Amazon reduced its workforce by letting go of many employees in its advertising unit to cut costs.
Due to concerns about a recession, Amazon began cutting costs by halting hiring, halting some projects, and slowing the expansion of warehouses. CEO Andy Jassy said in his note last month that given the uncertain economy and the “uncertainty that exists in the near future,” Amazon has chosen to be more streamlined.
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Notably, Amazon, like other big tech majors such as Facebook parent company Meta and Google parent company Alphabet, increased hiring during the pandemic to meet increased online shopping demand from homebound Americans. Meanwhile, the AWS division also experienced massive growth during the pandemic, benefiting Amazon and other cloud providers as companies, government agencies and schools accelerate their transformation to the cloud.
“However, in recent months, both AWS and AD have experienced slower growth as the companies reduce their spending in a challenging economic environment. As a result, the company has undertaken drastic cost-cutting measures, including reducing its workforce. AWS was included in the first round of layoffs within some teams.
“[हमारे] Given the rapid growth as well as the overall business and macroeconomic environment, it is critical that we focus our resources on identifying and putting our resources behind our highest priorities – the things that matter most to customers and that will move the needle for us. business,” Selipsky further notes in the memo. “In many cases this means team members are relocating the projects, initiatives or teams they work on; However, in other cases it has resulted in the elimination of these roles.”
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Amazon is shutting down the Halo division
On a related note, Amazon announced another major decision on Wednesday and reported the closure of its Halo division that sells health and sleep trackers. Amazon has announced that it will stop supporting Halo services starting July 31 and will refund Halo device purchases made in the last 12 months. The company has notified affected employees in the US and Canada, but has not specified the number of employees affected.
The Halo division was launched in 2020 with the introduction of the original Halo Band, a fitness tracker that provides access to health monitoring and analytics services. The division later released two additional products, the Halo View and Halo Rise, a contactless sleep tracker and a smart alarm clock.
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