Amazon plans to cut more than 18,000 jobs
Amazon announced on Wednesday that it will eliminate more than 18,000 employees which is a larger number than the e-commerce giant initially stated last year.
The Wall Street Journal had previously reported on the cuts, which Amazon claimed pre-empted its scheduled announcement.
“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted,” CEO Andy Jassy wrote in a memo to employees that the company published on its blog. “However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me.”
Source: cnbc.com
Tech firms are picking up from where they left off a year ago in 2023, getting ready for a prolonged economic recession. Salesforce announced on Wednesday that it would decrease its headcount by 10 percent, affecting over 7,000 employees. During the Covid global epidemic, both Amazon as well as Salesforce conceded to hiring too quickly.
Amazon particularly accepted that it had placed too many warehouse staff too quickly since customers shifted to online shopping. At the finish of the third quarter, the firm employed about 1.54 million individuals.
In November, Jassy announced that Amazon would remove positions, such as those in its physical stores, devices, and books divisions. CNBC revealed at the time that tech giant Amazon was planning to lay off approximately 10,000 employees. The figure has risen.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy wrote. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.”
Source: cnbc.com
The company intends to notify staff members who will be laid off beginning January 18, Jassy stated, mentioning that the majority of layoffs will occur in the Experience, stores, and People, and Technology (PXT) groups.
Other major tech companies, including Meta, which possesses Facebook, Instagram, as well as WhatsApp, and other businesses based on the cloud such as software firm Salesforce, have recently revealed significant layoffs.
Amazon has so far declared that it will start reducing projects such as the Echo which is better known as Alexa as well as delivery robots, that were wonderful but did not generate revenue.
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