There will be 18,000 layoffs at the company. What plan is in place to turn things around?
The position of top CEO at Amazon, which he vacated in the middle of 2021, will be taken back by billionaire Jeff Bezos, one of the five richest individuals in the world.
Jeff Bezos, who started Amazon in 1994, was determined to devote more time to space exploration, philanthropy, and a life of indulgent travel with his new companion, Lauren Sanchez. But Amazon’s financial situation might help him with his objectives.
The Wall Street Journal claimed that the billionaire’s homecoming will take place in the midst of a decline in his revenue and a wave of layoffs planned for the upcoming months.
Amazon reduces hiring records
The corporation will let go more than 18,000 employees in the first few months of 2023, according to current CEO Andy Jassy, who mentioned a “uncertain economy.”
Without include temporary workers hired during peak times like the holidays, the company, which employs around 1.54 million people worldwide, had anticipated in November that the cuts would affect 10,000 individuals.
The corporate positions in its business units and the human resources operations in both the US and Europe will be the main targets of the manpower reduction.
“Amazon has already survived a challenging and unsteady economic climate, and we will do the same going forward. These adjustments will provide us a better cost structure to allow us take advantage of our long-term prospects “According to the internal message made public by the news organizations Bloomberg, DPA, and AFP, Jassy added.
Although Amazon intended to make a formal statement, a worker told The Wall Street Journal the information ahead of time.
For months, there had been whispers about layoffs at the business. Although Amazon has already halted hiring, the rise in publicly reported layoffs indicates that things have gotten worse.
Like other IT firms, Amazon admitted in public that it overstaffed during the epidemic, a time when e-commerce enjoyed a boom. Demand has increased as a result of limitations on in-person transactions.
In fact, Amazon increased its facility between the beginning of 2020 and the beginning of 2022. Since then, the expansion of internet sales has slowed down, and consumer behavior has reverted to its prior patterns.
Since the Seattle-based company was founded in 1994, 18,000 jobs have been eliminated, making it the largest tech company announcement in recent months.
The company’s businesses include those in cloud hosting (Amazon Web Services), electronic gadgets like the Kindle e-book reader or the Alexa personal assistant, as well as the entertainment industry (MGM and Prime Video ).
While Meta, the parent company of Facebook, Instagram, and WhatsApp, stated last November that it will lay off 11,000 employees, or 13% of your workforce, Salesforce, the company that owns the Slack platform, also predicted that it will cut its plant by 10% (more than 7,000 employees).
Elon Musk, the new owner of Twitter, sacked approximately 3,700 people (or 50% of the employment), while Snapchat fired 1,200 employees (or 30%), in a similar manner.