Amazon Confirms Downsizing Of ~10K Employees, Extends Severance Packages

Amazon Confirms Downsizing Of ~10K Employees, Extends Severance Packages
  • Amazon.com, Inc AMZN confirmed shedding its corporate ranks to control costs.
  • Amazon could cut about 10,000 jobs, including in its retail, devices, and human-resources divisions, the Wall Street Journal reported. The final number of job cuts could change. 
  • The cuts would affect roughly 3% of its corporate staff and are unlikely to affect hundreds of thousands of warehouse workers.
  • "Given the current macroeconomic environment (as well as several years of rapid hiring), some teams are making adjustments, which in some cases means certain roles are no longer necessary," a spokesman said.
  • Amazon also extended voluntary buyout offers to some employees, including those in human resources.
  • Employees who lost jobs were likely to receive pay for the next two months at their current level with benefits. In some cases, people who fail to find a new role at Amazon will likely receive one week of pay for every six months worked. 
  • Employees would get a minimum severance of four weeks of pay and a maximum of 20 weeks.
  • Amazon offered three months' salary, plus severance, to some employees on its human-resources team to voluntarily leave the company. Employees have until November 29 to accept the buyout offer.
  • This week's team targets for cutbacks were employees in Amazon's Luna cloud-gaming service, Alexa marketing, Alexa AI and Alexa Privacy. Amazon also made cuts to its consumer product-development arm named Lab126.
  • CEO Andy Jassy, as part of a business review, has targeted unprofitable teams and projects at the company.
  • Price Action: AMZN shares traded lower by 1.33% at $99.83 in the premarket on the last check Thursday.
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