Amazon is now considering laying off 20,000 staff over the next few months – twice as many as first thought.
Sources say the move will affect its distribution center workers, technology staff, and corporate executives.
It comes as the retail and cloud computing behemoth pulls back on its staffing after a massive hiring spree during the pandemic.
Sources said Amazon staff at all levels would most likely be affected, where employees are ranked from level one to level seven.
It was previously reported Amazon might implement huge layoffs, with up to 10,000 people being fired.
Sources said company managers were told over the last few days to identify poor performers.
But it seems that number is set to rise to 20,000 employees.
This equals nearly six percent of corporate staff and almost 1.3 percent of its overall 1.5 million-strong workforce including global distribution center and hourly workers.
Corporate workers were informed that staff will get a 24-hour notice and severance pay, in line with their company contracts.
One source said: “There is a sense of fear among employees in the company as the news has come out.”
The redundancies would be the most significant in the company’s history.
The source said: “There is no specific department or location mentioned for the cuts; it is across the business.
“We were told this is as a result of over-hiring during the pandemic and the need for cost-cutting as the company’s financials have been on a declining trend.”
Amazon CEO Andy Jassy confirmed layoffs in a public message to staff on November 17, but did not disclose the number of people to be fired.
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In the memo, Jassy said the firm had already disclosed that layoffs will occur in the Devices and Books divisions.
He noted that the company will make a voluntary reduction offer to select workers in the People, Experience, and Technology (PXT) unit.
Sources have confirmed that those on the firm’s robotics team have been slashed.
An Amazon spokesperson did not respond to requests for comments.