Amazon has now confirmed the layoff of approximately 16,000 employees across organisations. In an email shared with Amazon employees, Beth Galetti, Senior Vice President of People Experience and Technology
at Amazon, has said that impacted employees in the US will get 90 days to look for a new role internally, along with transition support including severance pay, outplacement services, health insurance benefits (as applicable), and more.
Galetti confirmed the layoff in an email citing the need to 'strengthen the organisation by reducing layers, increasing ownership, and removing bureaucracy.' She said that this isn't the beginning of a new rhythm wherein broad reductions are announced every few months.
"Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. 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," Galetti explained. Amazon had reduced its workforce by 14,000 in October last year.
Here is what Amazon is offering impacted employees:
- US-based employees 90 days get the opportunity to look for a new role internally (timing will vary internationally based on local and country level requirements).
- Transition support including severance pay
- Outplacement services
- Health insurance benefits (as applicable)
While Amazon has confirmed that US employees will be able to look for a role internally for 90 days, such facilties are not outlined for employees outside the US. For instance, thousands of employees in India are expected to lose their jobs as well, with Chennai reported to be heavily impacted.
The Union of IT and ITES employees has strongly condemned the layoffs, calling it illegal. Emails to impacted employees should be rolling out now, and we will report more on this as time progresses.
Amazon has also shut down all of its Amazon Go and Amazon Fresh stores, in all of its 70 locations, focusing instead on Whole Foods and online grocery.
