Amazon cuts another 9000 jobs amid tech sector crisis

The ‘tech wreck’ just got a whole lot worse with Amazon announcing that 9000 jobs will be slashed, bringing the grand total to 27,000.

The ‘tech wreck’ just got a whole lot worse with Amazon announcing that 9000 jobs will be slashed.

It comes just two months after Amazon cut 18,000 roles, back in January, which at the time represented six per cent of Amazon’s workforce and also its largest redundancies in the firm’s history.

On Monday local time (Tuesday in Australia), Amazon’s chief executive announced the devastating news that a further 9000 roles were set for the chopping block.

In total, 27,000 roles have been cut this year.

The cuts will take place in coming weeks and are mainly concentrated in Amazon’s web, HR and advertising team. Staff who look after Amazon’s foray into Twitch livestreaming are also set to be impacted.

CEO Andy Jassy said the decision was made to ensure the company remained “streamlined” as tough market conditions bite across the globe.

Amazon CEO Andy Jassy announced the lay-offs. Picture: Michael M. Santiago / GETTY IMAGES NORTH AMERICA / AFP

“Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount,” Mr Jassy said in a company-wide email that has since been shared online.

“This was a difficult decision, but one that we think is best for the company long term.”

He added: “Some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago.

“The short answer is that not all of the teams were done with their analyses in the late fall; and rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible.”

Amazon had already put a pause on hiring and flagged in November last year that mass job cuts were on the horizon.

Amazon shares fell 1.7 per cent in the wake of the news.

The tech sector has been rocked by mass redundancies in recent months. Picture: Denis Charlet / AFP

Six days ago, another massive tech giant, Facebook owner Meta, also announced mass job redundancies.

Meta chief executive officer Mark Zuckerberg told employees that his company was laying off another 10,000 employees and closing about 5000 additional open roles in its own second major round of job cuts.

Closer to home, Australia has also been pummelled by the tough economic conditions.

Earlier this month, ASX-listed software firm Xero announced that it was going to reduce its headcount by 700 to 800 roles, which was a 15 per cent cut to the overall workforce.

A few days earlier, software giant Atlassian slashed 500 roles, which represents five per cent of its total global workforce.

Another software development company, Kinde, laid off 28.5 per cent of staff at the end of last month.

Also in February, comparison website Finder.com.au laid off or restructured 15 per cent of its workforce.

An Australian social media start-up called Linktree that was recently valued at $1.78 billion sacked 17 per cent of staff from its global operations.

Then there was Australian healthcare start-up Eucalyptus that provides treatments for obesity, acne and erectile dysfunction, which fired up to 20 per cent of staff after an investment firm pulled its funding at the last minute.

Debt collection start-up Indebted let go of 40 of its employees just before the end of the financial year, despite its valuation soaring to more than $200 million, with most of the redundancies made across sales and marketing.

The growing list of redundancies also included Australian buy now, pay later provider Brighte, that offers money for home improvements and solar power, which let go of 15 per cent of its staff in June, and another BNPL called BizPay which made 30 per cent of its workforce redundant.