Amazon CEO Andy Jassy has announced that 18,000 employees will be laid off due to restructuring.
Amazon recently announced a massive round of layoffs that is set to impact thousands of employees across the company. But what are the implications for the entertainment industry?
Due to Amazon’s size and scope, its decision to fire thousands of workers will undeniably significantly impact many industries – particularly those related to the entertainment business. This could include production studios, film and television production companies, digital content management firms, video game development companies, online streaming providers, music labels, talent agencies, and other fields.
The number of people affected by Amazon’s layoff will be in the thousands across multiple company areas. As a result, fewer resources may be available for those working in the entertainment industry, as hiring in specific sectors could slow down significantly. It could also mean less competition for roles and projects as some talented individuals may no longer be able to pursue a career in their field due to a lack of job opportunities.
The long-term implications for everyone in entertainment remain unclear at this point, but one thing is clear: it’s going to take some time before we know what the full effects are going to be.
In a memo to company employees on Wednesday, CEO Andy Jassy announced that Amazon would reduce their staff by an astonishing 18,000 personnel, far more significant than anticipated.
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Jassy relayed in a recently posted memo that layoffs will occur across “several teams,” with the most significant number of job cuts occurring within Amazon Stores and its People, Experience, and Technology (PXT) group.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.”
Amazon plans to reduce its workforce by 1.2% – a total of 18,000 jobs – in the upcoming months, including layoffs announced last fall. This number accounts for all total- and part-time employees as reported on September 30th, 2022
In November, Jassy proclaimed that they would implement redundancies across Amazon’s Devices and Books sectors. He also offered voluntary buyouts to a specific set of PXT employees. Furthermore, he advised subordinates that in the forthcoming year, they must prepare for “more role reductions” due to ongoing changes from management. When the news broke, The New York Times uncovered that Amazon had terminated an estimated 10,000 individuals.
At the Times’ DealBook conference in late November, Jassy articulated that Amazon had to make cuts due to an economic climate more volatile than anticipated by executives: “We just felt like we needed to streamline our costs,” he said.
On Wednesday, Amazon CEO Jassy communicated a memo to staff announcing that the company would have to cut more than 17,000 jobs in response to an article by The Wall Street Journal earlier in the day. Referencing said report, Jassy wrote, “We typically wait to communicate about these outcomes until we can speak with the directly impacted people. However, because one of our teammates leaked this information externally, we decided to share this news earlier so you can hear the details directly from me.”
Amazon intends to reach out to those affected by its most recent layoffs, beginning on January 18th, as reported by Jassy.
After joining Amazon in 1997, Jassy was promoted to the helm of the AWS cloud services division. In July 2021, he took the reigns from Jeff Bezos and officially became CEO of one of the world’s most successful tech companies.
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