Business & Economy

Amazon is laying off a large number of its employees

Andy Jassy, ​​CEO of Amazon.com, announced in a note to employees, Thursday, that the company’s job cuts will affect more than 18,000 jobs as part of a workforce reduction it previously revealed.

He added that the layoffs, which Amazon will begin reporting on January 18, will greatly affect the company’s e-commerce and human resources organizations.

The cuts amount to 6% of Amazon’s roughly 300,000 workforce. It marked a major shift for the retailer, which in recent months has doubled its base wage cap to compete more aggressively for talent.

Jassy said in the memo that annual planning “is more difficult due to economic uncertainty and because we have employed quickly over the past years.”

The company, which is based in Seattle, began laying off employees in the hardware department in November, and a source told Reuters at the time that Amazon was targeting 10,000 jobs in the hardware department, as well as human resources and retail.

Amazon, which is the second largest private sector employer in the United States, employing more than 1.5 million people, is bracing for potential growth at a slower pace. This comes as high inflation forces companies and consumers to cut spending.

The additional job cuts at Amazon will push its total number beyond plans announced by other major companies recently. It also marks a major shift for the retailer, which in recent months has doubled its base wage cap to compete more aggressively for talent.

Technology companies such as Meta Platforms and Microsoft Corp have cut thousands of jobs, bracing for a recession.

Meta, the parent company of Facebook, will cut more than 11,000 jobs this year.

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