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Amazon Is Planning to Lay Off Thousands of Employees

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Amazon Layoff

Key Specifications:

  • ECommerce Platform Amazon is set to lay off ten thousand Employees to cut costs.
  • This layoff would start as soon as this week.
  • Earlier this week, Twitter laid off around 50 percent of the Employees

After Twitter, Amazon Inc. plans to lay off 10,000 Employees in corporate and technology jobs starting as soon as this week. As per reports, about 3% of Amazon’s corporate staff. The exact number may vary as businesses within Amazon review their priorities.

The major job cuts will focus on the e-commerce giant’s devices unit, which houses voice-assistant Alexa, as well as its retail division and human resources.

The layoffs across the technology sector are due to the recession after years of rapid hiring. Last week, one of the meta Platform Facebook said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs.

Amazon becomes the first Technology Company that Layoff Workers.

The Online Retailer plans to eliminate the jobs under the Organization which makes voice-controlled “Alexa” gadgets and home-security cameras, as well as in its human resources and retail divisions.

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The number of layoffs is still not confirmed. The platform will lay off approximately 10000 Employees, representing roughly 3 percent of Amazon’s corporate employees and less than 1 percent of its global workforce. As per the sources, the layoff procedure will occur by a team rather than all at once as each business finishes plans.

It will be going to the biggest layoff in the history of Amazon. After a months-long review, the Company has cautioned employees in some unprofitable units to look for other opportunities within the company.

The Online retailer has spent a lot this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Amazon delayed warehouse openings and froze hiring in the retail group.

A layoff is a new trend across the Tech Industry. Elon Musk halved Twitter’s headcount this month after buying the company. Last week, Meta, the parent company of Facebook and Instagram, announced it was laying off 11,000 employees, about 13 percent of its workforce. Lyft, Stripe, Snap, and other tech firms have also laid off workers in recent months.

Slow economic growth and rising labor and transportation costs have forced the Companies to cut costs by firing the workers hired aggressively during the pandemic when the demand for e-commerce for cloud-based services surged.

Shares of Amazon closed down about 2% on Monday.

Shares of Amazon have lost about 40 percent of their value so far this year. Earlier this month, Amazon announced that it is freezing hiring for the next few months. In recent months, Amazon shut down its telehealth service, discontinued a quirky video-calling projector for kids, closed all but one of its U.S. call centers, axed its roving delivery robot, shuttered underperforming brick-and-mortar chains, and is closing, canceling, or delaying some new warehouse locations.

The pandemic produced Amazon’s most profitable era, as consumers flocked to online shopping and companies to its cloud computing services. Amazon doubled its workforce in two years and funneled its winnings into expansion and experimentation to find the next big things.

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