According to Chief Executive Andy Jassy in a public staff letter on Wednesday, Amazon.com Inc. will now be laying off more than 18,000 employees as part of a previously announced headcount reduction. The company’s human resources and e-commerce departments will be most impacted by the layoff decisions, which Amazon will start to announce on January 18, he continued.
Amazon to lay off more than 18,000 employees
The layoffs affect 6% of Amazon’s nearly 300,000-person corporate workforce and are a swift turnaround for a retailer that recently quadrupled its base pay threshold to compete more fiercely for talent. Given the unstable economy and the fact that we have hired quickly over the past few years, annual planning “has been more difficult,” Jassy noted in the note.
Amazon is the second largest employer in the US
Following Walmart Inc., Amazon is the second-largest private employer in America with more than 1.5 million employees, including warehouse staff (WMT.N). As rising inflation drove firms and consumers to cut back on spending and as its share price fell by half in the previous year, it has prepared for expected slower growth.
It began firing employees from its devices division in November with a target of 10,000 job cuts, according to a source . Its job cuts now exceed those at Meta Platforms Inc., the parent company of Facebook, which cut 11,000 positions, as well as those at other internet companies.
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