After Meta and Twitter last week, Amazon is the latest technology company to layoff its 10,000 employees in corporate and technology, to make deep cuts to its employee base to brace for a potential economic downturn.
Meta Platforms said last week it would cut more than 11,000 jobs or 13 percent of its workforce, to rein in costs. This follows a spate of sackings and hiring freezes across the tech sector, most prominently by Meta. Others include Elon Musk owned Twitter Inc, Microsoft Corp and Snap Inc.
Why Amazon is planning to layoff its employees ?
Amazon planning to layoff employees and implement cost-cutting measures. The news comes just weeks after the e-commerce warned Amazon for its slowdown in growth, according to reports the last few quarters haven’t been profitable.
Amazon job cuts will focus on the e-commerce giant’s devices unit and trimming its workforce is a signal that consumer sentiments are low, especially weeks before the holiday season when it generates the highest sales, which is usually the best time of the year for e-commerce and business. Which houses voice-assistant Alexa and also its retail division and human resources.
Amazon had more than 1.6 million full-time and part-time employees globally. The company layoff stays around 10,000, it would be the biggest layoff in the history of Amazon. It would represent less than 1 percent of the company’s workforce.
“Amazon’s growth slowed to the lowest rate in two decades, as the bullwhip of the pandemic snapped,”
Amazon was the world’s largest online retailer has spent much of this year adjusting to a sharp slowdown in e-commerce giant growth. Amazon delayed warehouse openings and froze hiring in the retail group and has been one of the most stable employers in tech world. The layoffs which have not yet been officially announced by Amazon, will be the largest in the company’s history.
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