It’s the largest set of lay-offs in Amazon’s history, although just a fraction of its 1.5 million global workforce.
« : »Amazon is laying off more than 18,000 employees – a significantly bigger number than previously planned – in the latest sign that a technology slump is deepening. Chief Executive Officer Andy Jassy announced the move in a memo to staff on Wednesday, saying it followed the company’s annual planning process. The cuts, which began last year, were previously expected to affect about 10,000 people. The reduction is concentrated in the firm’s corporate ranks, mostly Amazon’s retail division and human resources functions like recruiting. “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” he said. “These changes will help us pursue our long-term opportunities with a stronger cost structure.” Though the prospect of lay-offs has loomed over Amazon for months – the company has acknowledged that it hired too many people during the pandemic – the increasing total suggests the company’s outlook has darkened. It joins other tech giants in making major cuts. Earlier Wednesday, Salesforce announced plans to eliminate about 10 per cent of its workforce and reduce its real estate holdings. ‘I got this wrong’, says Zuckerberg as Meta begins cutting 13 per cent of workforce Amazon investors gave a positive reaction to the latest belt-tightening efforts, betting it may bolster profits at the e-commerce company.
