Amazon to shed over 18000 jobs as it cuts costs, the technology giant’s boss says. He added the announcement was brought forward “because one of our teammates leaked this information externally”.
The layoffs will have a major impact on the company’s e-commerce and human resources departments. Affected employees will be contacted by the company beginning January 18th. The 18,000 employees the company will lay off represent 6% of Amazon’s roughly 300,000 employees.
Impact on Annual Planning
“Annual planning has become more difficult given the uncertain economic climate and the rapid hiring of new staff in recent years,” Jassy said in a memo.
Amazon has braced for likely slower growth as soaring inflation encouraged businesses and consumers to cut back spending and its share price has halved in the past year. The company began letting staff go in November from its devices division, with a source telling Reuters at the time it was targeting around 10,000 cuts.
The move comes after the technology giant said last year that it would reduce its headcount without putting a figure on how many jobs would be cut.-Amazon to shed over 18000 jobs!!
- Date set for UK’s first ever Amazon workers strike
- Amazon staff laid off as tech giants cut costs
- Amazon: Robots spread but ‘we still need humans’
Other Sectors to be Hit
Tough Time for Tech
Things continue to be tough for big tech companies in the US. Amazon is the latest in a string of giant companies to announce layoffs in recent months.
A powerful combination of lower advertising revenues from companies looking to cut costs and lower consumer spending due to the cost of living crisis is hitting tech companies hard.
Gone are the boom times during pandemic lockdowns, when online activity surged while people were bored at home.
Amazon has already announced that it will limit projects like Echo (known as Alexa) and delivery robots.
As an anecdote, Silicon Valley companies tend to recruit and retain top talent at attractive salaries, even if they are not immediately needed, primarily to keep them out of work for competitors. This culture seems like a luxury that Big Tech can no longer afford.
Industry-wide cuts
Tens of thousands of jobs will be lost in the global tech industry amid sluggish sales and growing fears of a recession.
In November, Facebook owner Meta announced he would cut 13% of his workforce.
The social media company’s first mass layoff in its history will leave 11,000 of its 87,000 employees out of work worldwide.
Meta CEO Mark Zuckerberg said the cut was “the most difficult change in Meta’s history.”
The news follows billionaire Elon Musk’s massive Twitter layoffs, which cut about half of his workforce after buying the company in October.
Amazon began laying off workers in November, according to a LinkedIn post by an employee who said he was affected by the job cuts. It contained contributions from employees of the business, the Luna cloud gaming platform division, and Lab126 (the company behind the Kindle e-reader).
Tough Time Ahead
The firm had already introduced a hiring freeze and halted some of its warehouse expansions, warning it had over-hired during the pandemic. It has also taken steps to shut down some parts of its business, canceling projects such as a personal delivery robot.
Jassy’s note followed a report in the Wall Street Journal that the reduction would be more than 17,000 jobs. He said Amazon chose to disclose the news before informing affected staff because of a leak.
Amazon still must file certain legal notices about mass layoffs, and it plans to pay severance. Jassy said, “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so.”
Amazon to shed over 18000 jobs!!
Amazon to shed over 18000 jobs!!
Amazon to shed over 18000 jobs!!
Also, read | Your mobile bills may increase this year- Why, how and other details
