Local media reported that the global e-commerce colossus Amazon India has laid off 500 employees across all verticals.
Its cloud division AWS, as well as its People Experience and Technology Solutions (PXT) or HR and support verticals, will be affected by the reductions.
The layoffs are part of the company’s March announcement that it was terminating 9,000 employees from Amazon Web Services (AWS), Twitch, advertising, and human resources.
The latest round of redundancies at the technology company represents the second phase of workforce reductions. In January, Amazon laid off 18,000 employees in response to the global decline in tech equities.
“We completed the second phase of our planning this month, which resulted in these additional 9,000 role reductions,” Amazon CEO Andy Jassy wrote in a March memo to employees.
Affected by Amazon’s layoffs are the Cloud computing and human resources departments.
“I’m writing to inform you that we plan to eliminate an additional 9,000 jobs in the coming weeks, primarily in AWS, PXT, Advertising, and Twitch,” he said.
“This was a difficult decision, but we believe it will benefit the company in the long run,” he added.
Adam Selipsky, the CEO of AWS, initially stated that the reductions would begin in North America and then spread globally.
“Both the scale of our company and the size of our team have grown substantially over the past few years, driven by customer demand for the cloud and the unique value that AWS provides. This development has occurred rapidly because we have moved as swiftly as possible to meet customer demand, Selipsky had stated.
Brian Olsavsky, CFO of Amazon, attributed the layoffs to the sluggish development of AWS, as business customers anticipated market volatility and adopted a more conservative spending strategy.
Notably, the development of Amazon’s e-commerce business in India has slowed, highlighting the difficult market conditions the company faces in the country.
