Amazon to Lay Off
Amazon to Lay Off

Amazon to Lay Off Over 18k Employeesm, CEO Andy Jassy Said

Amazon to Lay Off: As last year, when the IT sector started actively shrinking, Amazon has shed the most workers of any company, 18,000, the tech giant announced on Wednesday.

Amazon CEO Andy Jassy explained in a blog post that the company’s recent rapid recruiting and the uncertain economic climate were the causes of the workforce reductions.

Hourly warehouse workers will not be impacted by the layoffs, which will predominantly affect the company’s corporate workforce. According to reports, Amazon had planned to fire about 10,000 workers in November, but on Wednesday, Jassy estimated that the business would be firing “slightly over 18,000” workers instead.

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In the blog post published on Wednesday informing readers of the drastic personnel decrease, Jassy attempted to sound upbeat, saying: “Amazon has survived unpredictable and challenging economies in the past, and we will continue to do so.”

While 18,000 positions may seem like a lot, they represent less than 1% of the 1.5 million employees that Amazon has in its corporate offices and warehouses.

Amazon was the most recent Big Tech business to see growth slow down from its pandemic-era surge, and sales were also hampered by inflation, which was at a 40-year high.

The commercial software company Salesforce also announced a round of layoffs that day, affecting 10% of its staff, or around 8,000 employees.

Amazon to Lay Off-

Salesforce Co-CEO Mark Benioff ascribed the reduction to a Silicon Valley cliche: the company hired excessively during the pandemic’s peak years. And now that corporate expenditure has decreased, cost-cutting is the main priority.

Benioff explained in a memo to staff that “while our income accelerated through the epidemic, we hired too many people leading into this economic slowdown we’re now seeing.”

A striking reversal for an industry that has seen gangbusters growth for more than a decade has been the announcement of significant personnel reductions by Facebook owner Meta, Twitter, Snap, and Vimeo in recent months.

Due to individuals avoiding in-store shopping and an explosion in demand for cloud storage, as more companies and governments moved their operations online, the pandemic greatly benefited Amazon’s bottom line. And as a result, Amazon went on a hiring rampage, creating tens of thousands of new positions over many years.

The Wall Street Journal broke the news of the layoffs at Amazon on Tuesday.

In his blog post, CEO Jassy recognized that although the company’s recruiting had gone too far, it still intended to help laid-off employees get over the blow.

We are providing packages that include a separation payment, transitional health insurance coverage, and outside job placement assistance to help people who are affected, Jassy said.

About Lionel Holmes 1849 Articles
Lionel Holmes is a journalism graduate with keen interest in covering Technology  news – specifically startups. He has as a keen eye for technologies and has predicted quite a few successful startups over the last couple of years. Lionel goal with this website is to report accurately on all kinds of stock news, and have a great deal of passion for Finance and active reporting. Lionel is diligent and proactive when it comes to Technology news reporting.

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