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IT sector on life support: Amazon announces another nine thousand layoffs

Andy Jassy, izvršni direktor Amazona
Andy Jassy, izvršni direktor Amazona

The American e-commerce giant Amazon plans to eliminate another nine thousand jobs in an effort to cut costs. The company, which employs about 1.5 million people worldwide, stated that the layoffs will primarily affect areas of cloud computing and advertising.

It has not yet been disclosed which countries will be affected, but it has been announced that the job cuts will occur in the coming weeks. CEO Andy Jassy said it is a ‘difficult decision,’ but that it is the best long-term choice for the company, as reported by the BBC.

Recall that the company already laid off 18 thousand employees in January. Jassy stated that in recent years, most areas of Amazon’s business have been adding roles rather than the opposite.

– However, given the uncertain economy we live in and the uncertainty that exists in the near future, we decided to be more rational in our costs and number of employees – he continued.

Like many tech giants, Amazon experienced a surge in sales during the pandemic when customers stayed at home, but recently its sales have slowed as consumers spend less due to the cost-of-living crisis.

Other companies, including Google and Meta, are struggling to balance cost-cutting measures with the need to remain competitive. Last week, Meta, which owns Facebook, Instagram, and WhatsApp, announced plans for laying off 10 thousand employees.

Jassy said that ‘it is never easy’ to lose employees.

– To those ultimately affected by these reductions, I want to thank you for the work you have done on behalf of customers and the company – he added.

Layoffs are also approaching Twitch, the world’s leading livestreaming platform. The news comes just days after Emmett Shear announced he would step down as CEO of Twitch after 16 years in that role.

Recall that Amazon acquired Twitch for one billion dollars back in 2014.

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