In a memo to staff on Monday, Andy Jassy said Amazon will lay off 9,000 more employees.
The cuts are on top of the previous layoffs that began last November and extended into January. More than 18,000 employees were affected by the round.
The decision to lay off more employees was made by Amazon as it looked to streamline costs and took into account the uncertain economy, as well as the uncertainty that exists in the near future, Jassy said. The company just wrapped up the second phase of its annual budgeting process, referred to internally as OP 2. The overriding tenet of our annual planning this year was to be leaner, while still investing heavily in the key long-term customer experiences that we believe can meaningfully improve customers lives and Amazon as a whole, Jassy said.
The latest round will primarily affect Amazon's cloud computing, human resources, advertising and Twitch live streaming businesses, Jassy said in the memo.
Amazon is reducing its headcount after it went on a hiring spree during the Covid epidemic. The global workforce of the company was more than 1.6 million by the end of 2021, up from 798,000 in the fourth quarter of 2019.
As the company struggles with an economic downturn and a slower growth in its core retail business, the company is undergoing a broad overview of its expenses. Amazon froze hiring in its corporate workforce, axed some experimental projects and slowed warehouse expansion.
Jassy said he remains optimistic about the company's largest businesses, retail and Amazon Web Services, as well as other new divisions it continues to invest in, while the company aims to operate leaner this year.