London: Amazon.com said it would axe another 9,000 roles totaling 27,000 job cuts in recent months, trimming from its long-profitable cloud unit that’s facing new headwinds and making it latest tech company to announce second layoff round in face of possible recession.

In note to staff posted online, CEO Andy Jassy said decision stemmed from ongoing analysis of priorities and uncertainty about economy. Whereas prior cuts had focused on company’s e-commerce and devices business as well as human-resources staff, now company would eliminate roles from Amazon Web Services, its advertising and Twitch streaming units.

Numerous tech giants including Microsoft Corp (MSFT.O), Salesforce Inc, Alphabet and Meta Platforms have slashed thousands of jobs in recent months after endemic-led hiring sprees left them overstaffed. Amazon follows Facebook-parent Meta in becoming second bellwether to announce second round of cuts. Jassy said company had added substantial amount of staff in past few years, but uncertain economy has forced it to choose cost and headcount cuts. “Given uncertain economy in which we reside and uncertainty that exists in near future, we have chosen to be more streamlined in our costs and headcount,” Jassy said in statement posted on company’s web site.

 “When considering recent headlines that could accelerate US’s entry into recession, at minimum, and increase its severity, at maximum, we are not surprised by Amazon’s plans,” D.A. Davidson analyst Tom Forte said in note.

Published in The Daily National Courier, March, 21 2023

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