The online retail behemoth Amazon stated on Wednesday that it would eliminate more than 18,000 positions from its workers. It blamed “the uncertain economy” and the fact that it had “hired rapidly” during the epidemic.
In a memo to his team, CEO Andy Jassy stated, “Between the reductions, we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles,” In November, the corporation announced 10,000 layoffs.
The company’s management, according to Jassey, is “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly.” “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,” he said.
There would be some layoffs in Europe. Jassey said, adding that beginning on January 18, the affected employees would be informed. He said the abrupt revelation was “because one of our teammates leaked this information externally.”
Unstable and challenging economies faced by Amazon
Amazon has already survived unstable and challenging economies, and we will continue to do so, added Jassy. The retailer has doubled its global workforce between the beginning of 2020 and the beginning of 2022 by hiring with fury during the pandemic to satisfy an upsurge in demand for deliveries. Without seasonal staff hired at times of high activity, such as the Christmas season, the business had 1.54 million employees globally at the end of September.
Historically, January has been the worst month for layoffs, according to US government data. The greatest layoff in the firm’s history, 18,000 workers will now be affected by job losses, according to Andy Jassy, CEO of Amazon. In addition, compass, a real estate brokerage firm, informed staff members that it would be executing a third round of layoffs in less than eight months.
First is utility: Most businesses start a new fiscal year on 1 January. Thus, from a tax perspective, it makes sense for businesses to adapt their budgets and cut staff expenditures, he added. Also, employers are pondering the following questions at this time: “What are we doing this year? What’s not going well? Can we change this or restructure that?”
According to Cooper, corporate executives are currently feeling the effects of a slowing economy and worry about an impending recession. Even if the US doesn’t experience a recession, the businesses it trades with do. Therefore they are working to keep labor costs low to maintain their competitiveness.
