Almost immediately it came out and said that email was sent by mistake.
HAHAHA!
Funny right?
It's not April 1st yet, is it?
However, a few days after this, the company issued another statement, this one, less likely to be a joke or mistake (or a really bad joke or mistake).
Amazon officially confirmed plans to cut around 16,000 jobs globally as part of a broader restructuring effort focused on reducing bureaucracy, increasing efficiency, and positioning the company for future growth.
This news was shared by Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, who published a message that was shared with employees. The layoffs are real, and connects to the company's larger plan of shedding 30,000 jobs, a plan that was revealed last year.
TL;DR
- Amazon will eliminate approximately 16,000 roles across the company
- The layoffs follow an internal email that was accidentally sent to staff
- The company says the cuts are part of an effort to remove layers and move faster
- Impacted employees will receive internal job search time and severance support
Job Cuts Confirmed
Amazon confirmed the job reductions early Wednesday, hours after an internal email referring to layoffs (sent accidentally) was later canceled after it was shared in error.
However, that email too outlined plans to lay off a group of employees as part of an effort to strengthen the company.
The company later acknowledged the cuts publicly, stating that the reductions were aimed at "reducing layers, increasing ownership, and removing bureaucracy," as well as improve speed across the organization.
Amazon did not disclose which teams or regions would be most affected by the latest round of layoffs.
Currently, the company employs around 1.5 million people globally, including roughly 350,000 in corporate roles.
What Amazon Said About The Reductions
Beth Galetti, SVP of People Experience and Technology at Amazon, said the company is not planning to make broad reductions every few months, referring to the 14,000 corporate job cuts announced in October and explained that some teams completed their organizational changes later than others.
The current reductions will impact approximately 16,000 roles across Amazon.
Most US-based employees whose roles are affected will receive 90 days to look for a new role internally, with timelines varying internationally based on local and country-level requirements.
Employees who do not transition into another role will receive severance pay, outplacement services, health insurance benefits where applicable, and additional transition support.
"Some of you might ask if this is the beginning of a new rhythm—where we announce broad reductions every few months," said Galetti in the message shared with employees. "That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate. That’s never been more important than it is today in a world that’s changing faster than ever."
At the same time, Amazon said it will continue hiring and investing in strategic areas critical to its future.
Inside Project Dawn And Employee Expectations
As per reports, a draft email written by Colleen Aubrey, a SVP at Amazon Web Services, was included in a calendar invitation titled Send Project Dawn email. Project Dawn is the internal code name for the job cuts.
The draft message said the changes were part of work ongoing for more than a year to strengthen the company by reducing layers, increasing ownership, and removing bureaucracy. It also noted that the decisions were difficult and aimed at positioning Amazon and AWS for future success.
According to a former employee, the job cuts had been expected for weeks. There was a broad understanding internally that Amazon intended to cut around 30,000 roles in total, combining the October reductions with additional layoffs expected through the end of May.
Topics For More Insights
Leadership Changes And A Stricter Work Culture
Since founder Jeff Bezos stepped down as chief executive four years ago, CEO Andy Jassy has overseen several rounds of layoffs and cultural changes.
Under his leadership, Amazon introduced a mandatory five-day, in-office work policy.
The company has also focused on cost reductions, including monitoring corporate mobile phone reimbursements for AWS employees. In an email sent to staff ahead of Thanksgiving, Jassy described the current period as a time to rethink everything the company has done, citing how rapidly the world is changing.
The layoffs come alongside other strategic shifts. Earlier the same day, Amazon announced plans to close its remaining Amazon Fresh and Amazon Go grocery stores while expanding its Whole Foods Market business.
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