Amazon CEO hints doable layoff wave in annual firm letter. Right here’s what he says

Amazon CEO, Andy Jassy, mirrored on a turbulent yr in his annual letter to stakeholders. In it, he addressed the troublesome resolution to put off 27,000 staff as a part of cost-cutting measures crucial for the expansion of the platform.

Final month, Amazon carried out its second section of layoffs ensuing within the termination of 9,000 staff. In an inside letter to workers, CEO Andy Jassy emphasised the choice was within the firm’s finest curiosity in the long term. Amazon is offering affected staff with a separation cost, transitional medical health insurance advantages, and job placement help. This follows a earlier spherical of job cuts the place 18,000 staff have been let go.

“We additionally reprioritized the place to spend our assets, which in the end led to the laborious resolution to get rid of 27,000 company roles. There are a selection of different modifications that we’ve made over the past a number of months to streamline our general prices, and like most management groups, we’ll proceed to guage what we’re seeing in our enterprise and proceed adaptively,” mentioned the corporate CEO in his letter to shareholders.

Jassy said that Amazon needed to conduct an intensive evaluation of every enterprise and invention inside the firm to find out whether or not they had sturdy potential to generate income, working revenue, free money circulation, and return on invested capital in the long term. He defined that this concerned analyzing each initiative and figuring out if the corporate had sufficient conviction in each.

The current spherical of layoffs was Amazon’s largest in historical past. Nonetheless, Jassy stays optimistic concerning the firm’s future prospects. He acknowledged that, to chop prices, Amazon needed to shut varied bodily shops and companies, in addition to discontinue initiatives resembling Amazon Cloth and Amazon Care. Nonetheless, he expressed confidence that these choices would allow the corporate to deal with its core strengths and proceed to innovate in ways in which would drive progress in the long run.

Jassy famous in his current letter that Amazon has made varied different modifications over the previous few months to scale back prices, and that the corporate’s management group will proceed to guage its enterprise efficiency and make changes as wanted. He additionally revealed that, beginning in Could, Amazon staff might be required to work within the workplace for at the very least three days per week.

Jassy talked about that Amazon has been investing closely in AI instruments, notably within the improvement of its personal Massive Language Fashions (LLMs), which have gained important reputation in current months. He expressed confidence that these LLMs would revolutionize and improve nearly each buyer expertise and indicated that Amazon will proceed to make substantial investments in these fashions throughout all its client, vendor, model, and creator experiences.





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