Last Updated on January 5, 2023 by Bitfinsider

Amazon said on Wednesday that it will eliminate more than 18,000 employees, a larger amount than the e-commerce giant previously stated last year.

Tech firms are resuming up where they left off last year in 2023, preparing for a prolonged economic slowdown.

Salesforcesaid on Wednesday that it will slash headcount by 10%, affecting around 7,000 people. During the Covid epidemic, both Amazon and Salesforce acknowledged to hiring too quickly.

Amazon particularly recognized that it had recruited too many warehouse workers too rapidly as consumers transitioned to online buying. At the conclusion of the third quarter, the corporation employed 1.54 million workers.

In November, Jassy said that Amazon will remove positions, including those in its physical shops, gadgets, and books businesses. CNBC reported at the time that Amazon was planning to lay off around 10,000 employees. The figure has risen.

“In the past, Amazon has weathered uncertain and challenging economies, and we will continue to do so,” Jassy wrote. “These adjustments will allow us to pursue our long-term possibilities with a more cost-effective cost structure; nevertheless, I’m also confident that we’ll be imaginative, clever, and scrappy during this period when we’re not hiring broadly and removing some jobs.”

Amazon expects to notify employees who will be laid off beginning January 18, Jassy said, stressing that the majority of layoffs would occur in the shops and People, Experience, and Technology (PXT) areas.