Amazon Starts Downsizing In US, Canada And More; Shuts Charity Donation Initiative

by Anusuya Lahiri, Benzinga Editor
January 19, 2023 8:30 AM | 2 min read |

 


  • Amazon.Com, Inc AMZN was preparing to cut jobs in the U.S., Canada, and Costa Rica by the end of the day Wednesday under its layoff plans involving 18,000 employees.

  • Amazon fired 2,300 employees in Seattle and Bellevue, Reuters reports.

  • The downsizing will most severely impact Amazon's human resources and store divisions. 

  • The company expected to notify all affected employees in the U.S., Canada, and Costa Rica by the end of the day, CNBC reports.

  • Amazon will later inform employees in other regions like China.

  • Amazon also shut down its charity donation program AmazonSmile.

  • Amazon donated roughly $500 million to charities since the program launched in 2013, CNBC reports.

  • Amazon now plans to wind down AmazonSmile by Feb. 20.

  • Amazon said will continue to invest in areas where it can "make meaningful change," such as assisting with natural disaster relief, affordable housing initiatives and community assistance programs.

  • Amazon's Devices and Services group, known for the Alexa digital assistant and Echo smart speakers, took the most brutal hit as the downsizing began in 2022.

  • Amazon CEO Andy Jassy had said the downsizing, amounting to about 6% of the company's roughly 300,000 corporate employees, would mainly impact the e-commerce and human resources divisions.

  • Amazon's downsizing began in November when it shared plans to axe 10,000 people in corporate and technology jobs.

  • Microsoft Corp MSFT proposed to slash 5% of its employees or 11,000 jobs.

  • The job cuts will affect several engineering divisions.

  • Microsoft will likely lay off as much as one-third of its recruiting staff.

  • AMZN Price Action: AMZN shares traded lower by 1.73% at $93.81 in the premarket on the last check Thursday.
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