Amazon intends to make the largest employment cutbacks in the history of the company by laying off around 10,000 employees working in corporate and technology positions beginning as early as this week.The group that handles amazon devices, the retail sector, and human resources would be the focus of the company’s 10,000 job cuts, which could begin as early as this week. Amazon layoffs can exceed the number and the head count freeze could stay for quite some time.
The layoffs at Amazon would affect less than 1% of its more than 1.5 million employees worldwide and about 3% of its corporate staff. The layoffs at Amazon would affect less than 1% of its more than 1.5 million employees worldwide and about 3% of its corporate staff.
As each company completes its planning, the number of Amazon layoffs is still a moving target and is probably going to happen team by team rather than all at once, according to one source. But if it maintains at approximately 10,000, it would represent roughly 3% of Amazon’s corporate staff and less than 1% of its more than 1.5 million global workforce, which is mainly made up of hourly workers.
The timing of Amazon’s planned layoffs during the crucial holiday shopping season, when the company has historically valued stability, demonstrates how quickly the weakening global economy has put pressure on the company to cut costs in areas where it has been overstaffing or underdelivering for years.
According to the article, job Amazon layoffs could begin as soon as this week and will likely affect employees who work on Amazon (AMZN) gadgets (such as Alexa, its voice assistant), as well as those in its retail and human resources divisions. According to the report, “the overall number of layoffs remains variable.” Amazon would also become the most recent technology company to fire employees, despite only recently fighting to keep them. The e-commerce giant increased the cash compensation cap for its tech employees by more than twice its previous level this year, citing “a particularly competitive labor market.”
Amazon announced that it will be halting corporate hiring “for the next few months.” As the pandemic changed consumer spending and purchasing patterns in favor of online shopping, Amazon quickly increased its workforce. However, Amazon predicted in its most recent earnings report that its Christmas quarter sales would be lower than anticipated.
In 2022 so far, Amazon shares have decreased by more than 40% amid a general market drop. The retail sector is facing a critical period as the holiday shopping season approaches. This is when news of prospective layoffs breaks. The National Retail Federation anticipates a 6% to 8% increase in sales over last year during the holiday shopping season, despite concerns about the recession and inflation.