Amazon to axe 18,000 jobs worldwide in bid to save costs

Amazon is axing more than 18,000 jobs worldwide in the biggest round of layoffs in its history in a bid to save costs.

The online giant employs 1.5 million globally and it is understood the job losses will include the UK and Europe, but the firm has not yet confirmed details of how each country will be affected.

The cuts amount to 6% of the company’s estimated 300,000-strong workforce. Most of the job losses will come from its brick- and mortar stores, including Amazon Fresh and Go, and its human resources division.

Amazon had warned in November of job cuts without confirming a figure, but said it had found more roles would need to be axed as part of an in-depth review of its business.

Employees affected by the cuts are expected to be told by 18 January 2023 and Amazon said it is offering a separation payment, transitional health insurance benefits, and job placement support.

Chief executive Andy Jassy blamed the move on an "uncertain economy" saying "we’ve hired rapidly over the last several years”.

In a note to employees which was made public, Mr Jassy said: “These changes will help us pursue our long-term opportunities with a stronger cost structure.

“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year.”

Mr Jassy also said the announcement had been brought forward after one of its employees leaked the details. He added: “We decided it was better to share this news earlier so you can hear the details directly from me.”