The Supply Chain Matters blog highlights this morning’s business headline reports indicating that Amazon intends to layoff upwards of an additional 9,000 jobs.

 

Development

Business and general media reports indicated that online retail platform provider Amazon intends to slash an additional 9,000 jobs. The move adds to the previously announced headcount reductions.

According to these published reports, Amazon CEO Andy Jassy announce the cuts internally today after the company’s senior leadership completed a further phase of the tech company’s annual planning process.

In a communication published on the company’s blog, Jassy indicated: “As we’ve just concluded the second phase of our operating plan (“OP2”) this past week, I’m writing to share that we intend to eliminate about 9,000 more positions in the next few weeks—mostly in AWS (Amazon Web Services), PXT, Advertising, and Twitch. This was a difficult decision, but one that we think is best for the company long term.”

As Supply Chain Matters highlighted in January, the tech company announced the elimination of upwards of 18,000 positions, primarily involving the devices, retail and human resources business areas.

Jassy further indicates in his posting: “Some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago. The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible.Mr. Jassy goes on to communicate an expectation that some additional business assessments remain and further determinations might be made in the April time period.

Bloomberg indicates in its reporting that the company had roughly 350,000 corporate employees before the first round of layoffs began in November of last year.

There have since been additional reports over the past few weeks indicating that in the customer fulfillment and warehousing direct labor ranks, the online retailer has elected to rehire the positions lost through voluntary attrition.

Obviously, this latest headcount reduction announcement has additional implications especially since it involves the AWS business unit, the company’s most profitable and previously most growing business unit in terms of revenue.

This announcement, coupled with Meta, the parent of Facebook announcement last week of the shedding of an additional 10,000 salaried workers are triggering fears for subsequent rounds of tech company layoffs in the coming months.

We believe that supply chain technology providers would not be immune to such a wave.

Stay tuned for a special edition of This Week in Supply Chain Tech commentary that highlights another significant tech development: What the SVB Collapse Implies for Supply Chain Tech

 

Bob Ferrari

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