Amazon Implements Cost-Cutting Measures, Lays Off 500 Employees in India
Amazon Lays Off Hundreds of Employees in India Amid Global Job Cuts
16 May 2023
Amazon laid off 500 employees in India across departments, as part of a global job cut plan.
The layoffs target AWS, HR, and support functions to streamline costs.
Amazon also closed its "Amazon Digital Kendras" and may reopen them in the future.
Amazon, the e-commerce giant, has recently laid off approximately 500 employees in India across various departments, including Amazon Web Services (AWS), human resources, and support functions. This move is part of a larger plan announced by CEO Andy Jassy in March 2023, which aims to cut 9,000 jobs worldwide. The layoffs in India reflect the company's efforts to streamline costs and adapt to an uncertain economic climate.
In March, CEO Andy Jassy disclosed plans to reduce approximately 9,000 jobs within Amazon's cloud services, advertising, and Twitch units due to recession fears. The company had already laid off around 18,000 employees just weeks before this announcement. Jassy explained that despite the significant staff expansion in recent years, the unpredictable economy necessitated cost-saving measures, including workforce reductions.
Jassy clarified that the previous round of layoffs was not announced alongside the more recent job cuts due to ongoing assessments within different teams. To ensure thorough analysis and careful decision-making, Amazon chose to communicate the reductions as soon as they were finalized. The CEO emphasized the importance of providing timely information to affected individuals.
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In April, Amazon also laid off around 100 employees in its video game divisions, affecting workers at Prime Gaming, Game Growth, and the San Diego studio. Additionally, there were reports of Amazon trimming the number of shares it planned to offer employees as part of its 2025 compensation. The company hinted at potential changes to its pay model, aiming to provide employees with more cash to compensate for any potential stock price fluctuations.
In India, the layoffs extended across different verticals, including Amazon Web Services (AWS), Human Resources (HR), and other areas. The company also closed down its "Amazon Digital Kendras," a seller support function, as part of its restructuring efforts in the country. Some employees were either released or reassigned to different departments. However, there remains a possibility of revamping and reopening the Digital Kendras in the future.
These recent layoffs mark the second round of job cuts at Amazon in recent months. The initial major reduction, announced in November of the previous year, targeted 18,000 employees globally, with layoffs beginning in January. Although the exact number of affected Indian employees has not been officially disclosed, reports suggest that hundreds have been impacted by the layoffs.