Amazon says it will cut more than 18,000 jobs, more than initially planned

Amazon said Wednesday that it will cut more than 18,000 jobs, a higher number than the e-retailer initially said it would cut last year.

The Wall Street Journal reported on the cuts earlier, which Amazon said came ahead of its planned announcement.

“We generally wait to communicate on these results until we can speak with the people directly affected,” CEO Andy Jassy wrote in a memo to employees that the company published on his blog. “However, because one of our teammates leaked this information externally, we decided it was best to share this news earlier so you can hear the details directly from me.”

Tech companies are picking up in 2023 where they left off last year, bracing for a prolonged economic downturn. Sales force said on wednesday that it would be reduce the number of employees by 10%, impacting more than 7,000 employees. Both Amazon and Salesforce have admitted that they hired too quickly during the pandemic.

amazon specifically admitted that it had added workers too quickly in warehouses as consumers shifted to online ordering.

In November, Jassy said Amazon would eliminate roles, including in its brick-and-mortar stores and in its device and book divisions. CNBC reported at the time that Amazon was looking to lay off about 10,000 of its employees. Now the number is higher.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I am also optimistic that we will be resourceful, resourceful and scrappy at this point in time where we are not hiring expansively and eliminating some roles.”

Amazon plans to inform employees that they will lose their jobs starting January 18, Jassy wrote, noting that most of the cuts will come in stores and in the People, Experience and Technology (PXT) groups.