Amazon has confirmed that it will cut 16,000 jobs globally, just hours after an internal email about layoffs accidentally reached employees. The message, sent on Tuesday evening and later retracted, preceded the official announcement made by the American company on Wednesday, citing the need to reduce bureaucracy and „strengthen the organization.”
The email, seen by BBC reporters, referred to layoffs in the US, Canada, and Costa Rica, as part of an ongoing restructuring process that has been underway for over a year.
Official Announcement: "bureaucracy elimination"
On Wednesday morning, Amazon confirmed the job cuts, explaining that they are part of a broader plan to simplify the internal structure.
Beth Galetti, Senior Vice President responsible for employee experience and technology, stated that the company does not intend to make "significant layoffs every few months," referring to the wave of 14,000 corporate layoffs announced in October.
"While many teams completed their organizational changes in October, other teams have only just finished this process," Galetti explained.
Amazon has approximately 1.5 million employees globally, with around 350,000 in corporate positions. The company did not specify which countries or divisions will be affected by the new layoffs.
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"Project Dawn," the codename for the layoffs
The incident that triggered internal confusion occurred on Tuesday when a preliminary version of an email drafted by Colleen Aubrey, Senior Vice President at Amazon Web Services (AWS), was included in a calendar invitation sent by an executive assistant to multiple employees.
The title of the invitation – "Send Project Dawn email" – referred to the internal codename of the layoff program. Although the message clearly indicated that staff reductions were imminent, employees had not been officially informed.
"This is a continuation of the work we have been doing for over a year to strengthen the company by reducing hierarchical levels, increasing responsibility, and eliminating bureaucracy, so that we can move faster for customers," the email stated.
Anticipated layoffs by employees
According to a former Amazon employee who requested anonymity, the layoffs had been anticipated for weeks. Within the company, there was a belief that management aimed to eliminate approximately 30,000 positions, in multiple stages.
Some of these reductions were expected to be carried out this month, with further layoffs planned by the end of May. Affected employees had the opportunity to apply for other available positions within the company, but the number of vacancies was limited. Those who were not relocated received compensatory packages based on their tenure with the company.
A tougher work culture under Andy Jassy
Since Jeff Bezos stepped down as CEO four years ago, Amazon has undergone several rounds of restructuring under Andy Jassy's leadership.
The current CEO has enforced a stricter organizational culture, including the requirement for employees to be present in the office five days a week – an exception among major technology companies.
Meanwhile, Amazon is focused on cost-cutting measures. According to Business Insider, the company is even monitoring the use of company mobile phones by AWS employees to limit a monthly reimbursement of $50.
"It's time to rethink everything"
In an email sent to employees before Thanksgiving, Andy Jassy discussed the "challenges and opportunities" of a world that is "changing at a very rapid pace," describing this period as "a time when we need to rethink everything we've ever done."
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