The latest round of job losses at Amazon, likely to be the biggest in its 28-year history, will start on Wednesday. In November, Amazon announced that it aimed to reduce workers, notably in its device and recruiting divisions. CNBC claimed that the corporation intended to fire around 10,000 workers at the time. CEO Andy Jassy stated earlier this month that more than 18,000 people, mainly in human resources and retail, would be laid off.
Following a hiring binge during the Covid-19 outbreak, Amazon is reducing its workforce. By the end of 2021, the company’s global employment has increased from 798,000 in the fourth quarter of 2019 to over 1.6 million.
Additionally, the corporation is dealing with a worsening economic outlook, higher costs, and sluggish sales growth. In addition to the layoffs, Amazon has halted warehouse development, set a hiring block for its corporate personnel, and shut down a number of test projects, including its healthcare service and a whimsical projector for kids that could make video calls.
Apart from Amazon, firms like Meta and Twitter have also fired employees
Other tech companies are reducing their workforces besides Amazon. Amidst a worsening economic slump, businesses, including Salesforce, Meta, and Twitter, have drastically reduced their headcounts.
Amazon made a voluntary reduction offer for some employees in the “People, Experience, and Technology (PXT) organization” back in November 2022, in addition to eliminating a number of roles across its Devices and Books businesses.
Amazon cut its headcount in India by 1,000, which may seem like a lot, but it represents only 1% of the company’s workforce. According to reports, the Indian market employs close to 1 lakh people. According to India Today Tech, the company has agreed to provide affected employees with five months of severance pay.
The CEO of Amazon, Andy Jassy, has announced that the tech giant will offer pay packages to affected workers worldwide. These consist of a separation payout, interim health insurance advantages, and outside job placement assistance.
Many people may already be aware of the reason for the layoff because the company has already explained it. Many computer companies are laying off workers to reduce costs and cope with the recession.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure. However, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles,” the company announced in a blog post. With this, it can be assumed that Amazon won’t be hiring more employees.
