Amazon’s note to staff about 16,000 layoffs just a day after axing stores

Amazon has announced 16,000 layoffs, the largest number in years, just a day after revealing it will close all of its Amazon Fresh and Amazon Go stores.

“We've been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Beth Galetti, senior vice president of people and technology at Amazon, told staff in a letter. “While many teams finalized their organizational changes in October, other teams did not complete that work until now.”

Galetti said the business will continue hiring and investing in “strategic areas” and said the layoffs don’t represent a “new rythym.”

“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan,” she wrote. “Every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate.”

Amazon announced Tuesday that it will close 72 Amazon grocery stores after failing to achieve a “truly distinctive customer experience with the right economic model needed for large-scale expansion' for these stores.”