Image source: Mashable India
Amazon: Mass layoffs, also known as large-scale layoffs or workforce cutbacks, occur when an employer terminates a significant number of employees at once.
This could happen for a number of reasons, such as a decline in revenue, a company restructuring, or the outsourcing of particular jobs.
In 2022, several prominent companies announced the layoff of hundreds of thousands of people.
Amazon, already a supporter of the cause, asserts that it will keep firing employees.
The news
Amazon is one of the world’s biggest and most prosperous online shops.
The company started out as an online bookstore but soon developed to sell a variety of products, including electronics, clothing, household items, and more.
In addition to its online store, Amazon provides streaming and cloud computing capabilities.
Currently, it is reported that Amazon is firing more than 18,000 employees.
According to the firm, the decision was made given the dismal forecast for the world economy.
Memo
Further layoffs at the immense online retailer will begin early next week, according to Andy Jassy, CEO of Amazon.
He wrote a memo outlining the decision, which read:
“Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments.”
“Those decisions will be shared with impacted employees and organizations early in 2023.”
Amazon, according to Jassy, has yet to determine how many new roles may be affected.
Each leader will consult with their teams after making a decision.
The document also mentioned that management had gotten together to consider ways to reduce expenses at the business.
Amazon’s executives will also emphasize the company’s long-term viability and what its customers value.
“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” said Jassy.
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The layoffs
In November, Andy Jassy said that Amazon would continue to make employment cuts into the first quarter of 2023.
According to multiple media reports, the e-commerce behemoth apparently set a goal to lay off over 10,000 employees last fall.
The layoffs at Amazon began on Wednesday.
Amazon plans to reduce employees in order to pursue long-term opportunities with a more sustainable cost structure.
Jassy acknowledged that making the cuts is a difficult decision and that it is challenging for people.
“We don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted,” he added.
Amazon will start informing the affected employees on January 18th.
“It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating,” said Jassy.
“But rather, people with emotions, ambitions, and responsibilities whose lives will be impacted.”
Shifting habit
The major e-commerce giants had record sales at the beginning of the pandemic.
Consumers have altered the way they shop for nearly all of their needs at the time.
However, Amazon was negatively harmed by the 2022 price increases.
Additionally, when more people started preferring in-person shopping—an area on which the company is now focusing—consumer demand declined.
Company stock
Amazon’s October holiday season forecast disappointed Wall Street analysts as it did not meet their expectations.
The company predicted final-quarter revenue between $140 and $148 billion, which was lower than the anticipated $155 billion.
The impact of rising inflation and recessionary fears on consumer spending led to a worse estimate.
Amazon reported revenue of $127.1 billion for the third quarter.
Even though it increased by 15% from 2021, it didn’t meet Wall Street’s forecasts.
Other companies
Many CEOs and founders of tech companies admitted that they misunderstood the pandemic demand.
As a result, numerous companies are currently dismissing workers.
Meta let go 11,000 employees, the largest mass layoff in its history.
Elon Musk has also been firing workers at Twitter left and right since he paid $44 billion to buy the company.
This week, Salesforce announced a 10% employee reduction.
References:
Amazon will lay off more than 18,000 workers
Amazon stock falls 14% on light holiday quarter sales forecast
