Amazon will eliminate more than 18,000 jobs, the CEO claims.
Due to "the unpredictable economy" and the fact
that it "hired swiftly" during the pandemic, Amazon has said it will
eliminate more than 18,000 jobs from its employees. In a memo to his team, CEO
Andy Jassy stated, "With the reductions, we announced in November and the
ones we're sharing today, we aim to cut slightly over 18,000 roles." In
November, the corporation announced 10,000 layoffs.
The number of positions that would be eliminated under
the plan is 6% of Amazon's approximately 300,000-person corporate workforce,
making it the biggest recent employment reduction to affect the US tech sector.
The company's management is "fully conscious that
these role eliminations are terrible for people, and we don't take these
decisions lightly," according to Jassy. We are providing packages that
include a separation payment, transitional health insurance coverage, and
outside job placement assistance to help people who are affected, he said. Jassy
stated that some of the layoffs would occur in Europe and that the affected
employees would be notified beginning on January 18.
He claimed that "one of our teammates exposed this
information externally," which was why the hasty announcement was being
made. The online store doubled its global headcount between the beginning of
2020 and the beginning of 2022 in order to handle the pandemic's spike in
delivery demand. Without considering seasonal workers hired at times of high
activity, particularly during the Christmas season, the business employed a
total of 1.54 million employees worldwide at the end of September. As
increasing inflation drove firms and consumers to cut back on spending and as
its share price fell by half in the past year, it was now preparing for
expected weaker growth.
Amazon has already survived unstable and challenging
economies, and we will continue to do so, added Jassy. Major platforms in the
tech industry that rely on advertising for revenue are being forced to decrease
costs to advertisers as a result of inflation and rising interest rates.
Facebook's parent company, Meta, stated in November that
11,000 jobs, or around 13 percent of its staff, would be lost. At the end of
August, Snapchat let go of 1,200 workers, or nearly 20% of its workforce. Elon
Musk, a billionaire, purchased Twitter in October, and subsequently, let go
roughly half of its 7,500 staff members.
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