Amazon Announces 16,000 Job Cuts Following Email Mishap

In a surprising turn of events, Amazon confirmed it will cut 16,000 jobs shortly after an internal email mistakenly informed staff about the layoffs. The cuts primarily affect employees in the US, Canada, and Costa Rica as part of the company's aim to enhance operational efficiency.

The email, shared late on Tuesday and seen by the BBC, mentioned that a significant number of employees were being laid off to strengthen the company. However, it was reportedly sent in error and was retracted soon after.

On Wednesday, Amazon publicly announced the job reductions, emphasizing efforts to remove bureaucracy to better serve its customer base. Beth Galetti, a senior vice president at Amazon, stated that the company does not plan to make broad reductions every few months, referencing another round of job cuts that occurred in October affecting 14,000 employees.

A draft email written by Colleen Aubrey, another senior vice president at Amazon Web Services (AWS), indicated that the layoffs were part of a project known as Project Dawn. The contents were inadvertently included in a calendar invitation sent to several employees, mirroring Amazon's ongoing work to reduce organizational layers and speed up decision-making.

Despite prior knowledge among employees about potential job cuts, detailed communications on the layoffs had not been formally made until now. According to a former employee, there had been expectations of overall cuts nearing 30,000 roles by the end of May, with the firm offering limited reemployment opportunities to those laid off.

Since the start of 2022, major tech companies, including Amazon, have faced economic pressures leading to massive workforce reductions, totaling around 700,000 layoffs across the tech sector in recent years. In light of these challenges, Amazon continues to adjust its operational strategy, mandating in-office attendance five days a week and closely managing expenses, such as monitoring mobile phone reimbursements.