After Meta, Amazon announces record wave of layoffs
Amazon is not immune to the economic crisis. After Meta and other tech giants, Jeff Bezos’ group announced that it was cutting 18,000 jobs. European workers are not spared.
Amazon has just announced significant layoffs. In a statement, the company’s CEO Andy Jassy, a “Over 18,000” works. The announcement comes hours after the Wall Street Journal’s disclosures. The media actually published confidential information about Amazon’s budget constraints.
Some of the layoffs will affect Europe. Most relocations are planned annually Amazon stores and human resources department. The firm has committed to notify the laid-off workers from January 18, 2023. At the same time, Amazon has increased the price of its Prime subscription to increase its profits.
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Why is Amazon cutting 18,000 jobs?
The e-commerce giant announced 10,000 job cuts last November. A few months later, Amazon finally decided to cut its workforce by nearly half. This the largest decrease It has been decided by Amazon since its inception in 1994.
To justify this drastic measure, Jeff Bezos’ replacement blames ” uncertain and difficult economy”. Unsurprisingly, Amazon’s financial results this contributed to unprecedented budget constraints. In the third quarter of last year, Amazon recorded a 48% year-over-year decline in operating results. In turn, the net result decreased by 9%.
“The balance has been more challenging this year given the uncertain economy and the fact that we’ve been hiring more quickly in recent years.”– Andy Jassy explains
The layoff plan follows massive hiring by Amazon during the health crisis. There was indeed a Seattle company to respond to the explosion of online shopping doubled the number of employees. Amazon even hired more than 427,000 people during the first months of the prison.
At the end of last September, Amazon folded 1.54 million workers not to mention the countless seasonal workers who are hired around the world during the busiest times of the year. In particular, the company is used to using day workers to mark the end of the year. As Christmas approaches in 2021, 12,000 seasonal workers have come to lend a hand to group workers.
Decreased desire to expand
After the spectacular recruitment of the Covid era, Amazon needs to revise its ambitions downwards. It’s not the only American giant to cut back. At the end of last year, Meta had to lay off 13% of its workforce, or 11,000 individuals. Like Amazon, so is the group behind Facebook hired with a vengeance during a pandemic. The company was also in an economic crisis.
The situation is the same on the Twitter side. Elon Musk’s grip on the social network has laid off half of its employees, prompting concerns from regulators and users. Twitter founder Jack Dorsey believes so ” increased the size of the company very quickly » by recruiting additional workers.
The carnage does not end there. Software publisher Salesforce to cut 10% of workforce, or more than 7,000 employees, to save money. Like Amazon and Meta, Salesforce admits to hiring many workers during the Covid-19 crisis. The company’s workforce has grown by 30% in two years.
Amazon plans to release its annual financial results on February 1, 2023. Given the announced cuts, we can expect up to half of earnings. Amazon’s CEO is confident that job cuts will help the company ” capitalize on long-term opportunities with stronger cost allocation”.
Source:
Amazon
