Amazon, the online giant that employs 1.5 million people globally, did not say which countries the job cuts would hit but said they would include Europe.
Most job losses will come from its consumer retail business and human resources division.
Boss Andy Jassy cited the “uncertain economy” for the cuts, saying it had “hired rapidly over several years.”
“We don’t take these decisions lightly or underestimate how much they might affect the lives of those impacted,” he said in a memo to staff.
He said the announcement had been delayed because one of the firm’s employees had leaked the cuts externally.
“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” he added.
Amazon has seen sales slow after business boomed during the pandemic, when customers bored at home spent a lot of time online.
A potent combination of a downturn in advertising revenues due to businesses seeking to save cash and consumers spending less as the cost-of-living crisis bites is hitting tech firms hard.
Other big tech firms, including Meta—which owns Facebook, Instagram, and WhatsApp—and cloud-based business software firm Salesforce, have also recently announced big cuts.
Amazon has already announced that it’s cutting back on projects like the Echo (better known as Alexa) and delivery robots—which were nice-to-haves but not making money.
Anecdotally, there’s a tendency in Silicon Valley for firms to hire and retain talented workers on attractive salaries, even if they’re not immediately needed, primarily to prevent them from working for rivals. Big tech can no longer afford to maintain this culture.
Amazon employees affected by the cuts are expected to be told by 18 January.
The move comes after the technology giant said last year that it would reduce its headcount without saying how many jobs would be cut.
A potent combination of a downturn in advertising revenues due to businesses seeking to save cash and consumers spending less as the cost-of-living crisis bites is hitting tech firms hard.
