The Information reports that Amazon is delaying the start dates for some new graduates that it hired, some by as long as six months, as it tries to "rein in its corporate headcount."
The moves come after Amazon rescinded some offers and laid off other existing employees.
According to the story, "Amazon started contacting would-be employees across divisions including Amazon Web Services and retail on Monday to inform them about their new start dates, a person familiar with the matter said. Amazon told the incoming hires, who had been due to start in early 2023, that they would receive one month of pay in the meantime … It’s unclear exactly how many incoming employees have had their start dates delayed."
Amazon spokesman Brad Glasser said in a statement that “Amazon remains committed to university recruiting and our internship program as important pathways to find the next generation of leaders and builders."
However, the cuts and delays aren't hitting every corner of the company.
The Information also reports that Amazon "will boost spending on its self-driving car development unit, Zoox, in 2023, which is already soaking up close to a billion dollars a year, said two people familiar with the situation."
The story says that "Zoox has pitched itself squarely as an autonomous ride-hailing company since it was founded in 2014, a focus that hasn’t changed under Amazon. Some inside the company, however, say the company’s real long-term value could come from developing self-driving technology to power both taxis and delivery vehicles. When Zoox was marketing itself to potential buyers ahead of the Amazon acquisition, the company mocked up a concept version of an autonomous delivery vehicle, according to a source familiar with the matter."
And, the Wall Street Journal reports that Amazon also is spending on cyber security, "relying on a combination of internal training and active recruitment to help navigate a worldwide cyber talent shortage.
"The market for cybersecurity professionals is competitive. The cybersecurity talent gap grew by 26.2% over the past year to around 3.4 million unfilled jobs worldwide, according to professional group (ISC)2."
Chief Security Officer Stephen Schmidt, "a former senior executive at the Federal Bureau of Investigation and a decade-plus Amazon veteran, said he was promoted to Amazon’s top security post in January in part to grow the security team and address retention. He oversees information security, personnel security and physical security, and was previously chief information security officer of Amazon’s cloud unit Amazon Web Services."
- KC's View:
It always seemed pretty clear that Amazon's cuts would be surgical - the company's leaders are too smart, with too many resources, to be purely reactive. Amazon has to grow, and so investments must continue to be made.