Amazon, known for slashing product prices, is now joining what seems to be the latest trend amongst big tech companies—slashing headcounts.
This comes following the rampant halving of employees by Elon Musk at Twitter, Meta laying off roughly 13% of its employees and more.
Amazon Aims to Lay Off 10,000 Employees
Yes, 10,000. With four zeroes.
The job cuts, which has started this week, are said to focus on Amazon’s devices organisation, retail division and human resources.
According to CEO Jassy, some in Amazon’s “People, Experience and Technology” organisation, which includes recruiters and human resources professionals, were offered voluntary buyouts.
Meanwhile, they are still hiring warehouse workers in preparation for the holiday season.
The dismissals will also continue into 2023 as the company is still in the midst of its annual operating planning process.
Hence, business leaders are still deciding on the need for further job cuts. Moreover, the layoffs are conducted team by team instead of all at once.
This mass layoff of employees can also be said to be a buildup from Amazon’s previous implementation of a hiring freeze in its corporate workforce.
Over the past few months, CEO Jassy has put this hiring freeze in motion while also shutting down a few smaller programmes.
Nevertheless, this is going to be Amazon’s biggest reduction to date.
Why?
On the surface, it seems peculiar that a company would start laying off this many employees. But, given the precarious and worsening state of the economy, it makes sense that Amazon has taken this step.
After all, Amazon now saw slower growth in some divisions alongside a ballooning headcount. Essentially, this is Amazon containing its losses following the brutal economy during the pandemic.
What is the point of a large workforce if it has no customers to serve?
In CEO Jassy’s memo to employees regarding this matter, he said that they “continue to face an unusual and uncertain macroeconomic environment” and that “after a deep set of reviews, we recently decided to consolidate some teams and programs.”
You can watch this video to know why tech firms are laying off people in droves
What Now?
Amazon has tried to make this process as seamless and painless as possible for its employees (or rather, former employees).
Yes, it’s very, very different from Twitter.
Many employees were given 60 days to find new jobs within Amazon. However, for those who are unable to do so, Amazon had offered packages (which include separation payment, transitional benefits and external job placement support) to support them.
Looking towards the future, CEO Jassy’s memo ends on a note of hope and confidence, stating that “the key will be to do what Amazon does best—obsess over customers and invent relentlessly on their behalf—and if we do that, we should all be very optimistic about Amazon’s future. I know I am.”
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Featured Image: Eric Broder Van Dyke / Shutterstock.com
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