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Amazon starts layoffs in HR and cloud units: Read the memos announcing the cuts
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Amazon starts layoffs in HR and cloud units: Read the memos announcing the cuts
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AMAZON STARTS LAYOFFS IN HR AND CLOUD UNITS: READ THE MEMOS ANNOUNCING THE CUTS

Published Wed, Apr 26 202310:55 AM EDTUpdated Wed, Apr 26 20231:58 PM EDT
Annie Palmer@in/annierpalmer/@annierpalmer
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Key Points
 * Amazon on Wednesday began laying off some employees in its cloud computing
   and human resources divisions.
 * The layoffs are part of the previously announced job cuts that are expected
   to affect 9,000 employees, on top of the 18,000 job cuts that took place
   earlier this year and last November.
 * CEO Andy Jassy has been aggressively cutting costs across the company through
   layoffs, a corporate hiring freeze and by ending some experimental projects.

In this article

 * AMZN-1.50 (-1.37%)

Follow your favorite stocksCREATE FREE ACCOUNT
Andy Jassy, CEO Amazon Web Services, speaks at the WSJD Live conference in
Laguna Beach, California, U.S., October 25, 2016.


Amazon on Wednesday began laying off some employees in its cloud computing and
human resources divisions.

Amazon Web Services CEO Adam Selipsky and human resources head Beth Galetti sent
notes to staffers in the U.S., Canada and Costa Rica informing them of the job
cuts.



“It is a tough day across our organization,” Selipsky wrote in the memo.

The layoffs are part of the previously announced job cuts that are expected to
affect 9,000 employees. Last week, Amazon laid off some employees in its
advertising unit, and it has let go of staffers in its video games and Twitch
livestreaming units in recent weeks.

Amazon wrapped up a separate round of cuts earlier this year that affected
approximately 18,000 employees. Combined with the cuts this month, it marks the
largest layoffs in Amazon’s 29-year history.

Amazon CEO Andy Jassy has been aggressively slashing costs across the company as
the e-retailer reckons with an economic downturn and slowing growth in its core
retail business. Amazon froze hiring in its corporate workforce, axed some
experimental projects and slowed warehouse expansion.

By announcing layoffs in ads and AWS, Jassy has shown that two of Amazon’s
biggest and most profitable businesses aren’t immune to the cost-cutting. Both
AWS and ads have experienced slowing growth in recent months as companies trim
their spending amid a challenging economic environment.



Some teams within AWS were included in the earlier round of layoffs. A portion
of the cuts on Wednesday is expected to land in AWS’ professional services arm,
which helps customers troubleshoot issues with their cloud infrastructure,
according to a current employee, who asked to remain anonymous because they
weren’t authorized to speak on the matter.

Head count in AWS ballooned during the Covid pandemic, which proved to be a
massive boon for Amazon and other cloud providers, as companies, government
agencies and schools sped their transition to the cloud.

“Given this rapid growth, as well as the overall business and macroeconomic
climate, it is critical that we focus on identifying and putting our resources
behind our top priorities — those things that matter most to customers and that
will move the needle for our business,” Selipsky wrote in the memo. “In many
cases this means team members are shifting the projects, initiatives or teams on
which they work; however, in other cases it has resulted in these role
eliminations.”

Amazon is scheduled to report first-quarter earnings after the bell Thursday.
Investors will look for any insight into whether Jassy’s cost-cutting efforts
have improved profitability, and when Amazon executives expect AWS growth to
reaccelerate.

Shares of Amazon surged more than 3% in afternoon trading Wednesday.

Here’s the full memo from Selipsky:

AWS team,

As you know, we recently made the difficult decision to eliminate some roles
across Amazon globally, including within AWS. I wanted to let you know that
conversations with impacted AWS employees started today, with notification
messages sent to all impacted employees in the U.S., Canada, and Costa Rica. In
other regions, we are following local processes, which may include time for
consultation with employee representative bodies and possibly result in longer
timelines to communicate with impacted employees.

It is a tough day across our organization. I fully realize the impact on every
person and family who is affected. We are working hard to treat everyone
impacted with respect, and to provide a number of resources and touchpoints to
aid in this transition. This also includes packages that include a separation
payment, transitional health insurance benefits, and external job placement
support.

To those to whom we are saying goodbye today, thank you for everything you have
done for this business and our customers. I am truly grateful. To all AWS
builders, thank you for your compassion and empathy for your colleagues.

Both the size of our business and the size of our team have grown significantly
over recent years, driven by customer demand for the cloud and for the unique
value AWS provides. This growth has come quickly as we’ve moved as fast as we
could to build what customers have needed. Given this rapid growth, as well as
the overall business and macroeconomic climate, it is critical that we focus on
identifying and putting our resources behind our top priorities—those things
that matter most to customers and that will move the needle for our business. In
many cases this means team members are shifting the projects, initiatives or
teams on which they work; however, in other cases it has resulted in these role
eliminations.

The fundamentals and the outlook for our business are strong, and we are very
confident in our long-term prospects. We are the leading cloud provider by a
wide range of benchmarks, from our feature set to our security capabilities to
our operational performance. We are focused on continuing to innovate in the
areas that matter most to our customers as we help them minimize expense,
innovate rapidly, and transform their organizations. 

I am optimistic about the future. We’ll tackle our opportunities and our
challenges, and continue to change the world.

Thank you,

Adam

And here’s the full memo from Galetti:

PXT Team,

As Andy shared a few weeks ago, leaders across the company have worked closely
with their teams to decide what investments they are going to make for the
future, prioritizing what matters most to customers and the long-term health of
our businesses. Given PXT’s close partnership with the business, these shifts
impact our OP2 plans as well, and we have made the difficult decision to
eliminate additional roles within the PXT organization.

Today we shared this update with our PXT colleagues whose roles were impacted
across the U.S., Canada, and Costa Rica. In other regions, we are following
local processes, which may include time for consultation with employee
representative bodies and possibly result in longer timelines to communicate
with impacted employees.

These decisions are not taken lightly, and I recognize the impact it will have
across both those transitioning out of the company as well as our colleagues who
remain.

To those leaving, I want to say thank you for your contributions. You’ve helped
build Amazon into the extraordinary company it is today, and we are here to
support you during this difficult time. In the U.S., we are providing packages
that include a 60-day, non-working transitional period with full pay and
benefits, plus an additional several weeks of severance depending on tenure, a
separation payment, transitional benefits, and external job placement support.

While this moment is hard, I remain energized by the important work that lies
ahead of us. Together, we are building a workplace that helps fuel how
Amazonians invent and deliver for customers. From making it easier for employees
to find the information and help they need, to expanding our benefits, I am
proud of the progress we’ve made over the last few years. This meaningful work
is a direct reflection of PXT’s perseverance, resilience, and leadership. Thank
you.

Please know that the entire PXTLT, including myself, is here to answer your
questions and support you.

-Beth


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