The biggest technology giant, Amazon, plans to lay off around 10,000 employees in the future. This is seen as a bloodbath in the technological world after Twitter, and Facebook parent Meta significantly announced kicking the employees out of the organization.
As per the report shared by the New York Times, Amazon plans to lay off approximately 10,000 people in “corporate and technology jobs starting as soon as this week.” It has also been mentioned that the total layoffs of around 10,000 people could represent roughly 3% of Amazon’s corporate employees and less than 1% of its global workforce of more than 1.5 million, composed primarily of hourly workers.
The report said that the cuts would focus on Amazon’s devices organization, which includes the voice-assistant Alexa, its retail division, and human resources.
The plan was introduced right after the announcement by Twitter’s new owner, billionaire Elon Musk, to reduce the social media’s workforce by half by laying off 13% of its workforce or 11,000 employees.
Jeff Bezos told CNN that they are planning to give away approximately half his $124 billion. Rs. 10,04,100 crore net worth to charity over its lifetime.
The tech giants have decreased its headcount by almost 80,000 people.
Recently, Amazon has stopped the procedure of hiring teams in September. It stopped filling more than 10,000 open roles in its core retail business in October. Two weeks ago, the company froze hiring in its cloud computing division. The step was so sudden that recruiters received information regarding the points for job candidates almost a week later.
Amazon’s planned retrenchment during the critical holiday shopping season has typically been valued as stable. Thus, it reflects how quickly the souring global economy has pressured it to trim businesses that have been overstaffed or under-delivering for years.
After experiencing the most profitable era during the COVID-19 pandemic, the exponential growth in online consumer, “Amazon’s growth slowed to the lowest rate in last two decades.” It has also been witnessed that as consumers flocked to online shopping and companies to Amazon’s cloud computing services, the tech giant doubled its workforce in two years and channelled its winnings into “expansion and experimentation so that it can identify the next big things.” However, as the world recovered from the pandemic, consumers preferred shopping for goods online. Amazon has experienced high costing from the decision to overinvest and rapidly expand, while changes in shopping habits and high inflation dented sales. Amazon’s retail business covering its physical and online retail business and logistics operations, has been “under strain” after the surge of demand and “breakneck expansion” during the pandemic. Amazon has also mentioned that the company has pulled back expansion plans.
The cooler-sized home delivery robot employed 400 people. Fabric.com that is a subsidiary that sold sewing supplies for 30 years. Brian Olsavsky, the finance chief, told investors that the company is following realistic factors weighing on people’s wallets. The New York Times report added that in recent months, Amazon had stopped several initiatives the company took, including Amazon Care, which provided primary and urgent health care after failing to find enough customers.
For Amazon, Devices and Alexa are at risk for cuts. The report marked that Alexa and related devices rocketed to a top company priority as Amazon raced to create the leading voice assistant, which leaders thought could succeed mobile phones as the following essential consumer interface. From 2017 to 2018, Amazon doubled its Alexa and Echo devices staff to around 10,000 engineers.