Amazon will lay off more than 18,000 workers amid tech layoff wave

Amazon is preparing for the biggest layoff in the company's history as the tech industry is dealing with economic problems. As reported, Amazon will lay off more than 18,000 employees worldwide. CEO Andy Jassy has made statements regarding the layoffs.

"Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles," Andy Jassy stated.

"Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT (People, Experience, and Technology) organizations," he said.

"We are working to support those who are affected and are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support," Jassy added.

This means that Amazon, which has more than 1.5 million employees as of the end of September, will reduce its workforce by about 1%.

Amazon investors responded positively to the layoffs. Shares of the company rose nearly 2 percent after the Wall Street Journal announced the plan.

Morgan Stanley U.S. Equity Strategist Mike Wilson said the tech layoffs were instrumental in protecting profit margins amid the slowdown in economic growth.

On the other hand, Amazon is not the first tech company to experience mass layoffs. Tech giants have recently started to go through one after another workforce cuts.