According to several American newspapers, the platform will lay off around 10,000 employees. The group’s chief did not confirm that number, but said the trial began on Wednesday.
Amazon confirmed Thursday, November 17, that it had begun layoffs to deal with the economic crisis after several days of rumors of a redundancy plan at the e-commerce giant. “The economy is still in a complicated situation and we have quickly hired new employees in recent years” remarked Andy Jassy, the head of the American group, in an internal note published on the Amazon website. According to several American newspapers, the platform and its various branches will lay off around 10,000 employees. Andy Jassy did not confirm that figure but said the trial started on Wednesday and will continue early next year.
The first teams affected were those dealing with the brand’s electronic devices (like Kindle readers). Physical stores will also be affected. “There will be more job cuts as managers make adjustments. These decisions will be communicated to affected employees and organizations in early 2023.‘ the manager explained.
“The Hardest Decision”
“I’ve been in my role for about a year and a half and this is without a doubt the most difficult decision we’ve made in that time.‘ he explained, assuring that he was aware that it was not just about ‘posts“but from”People with emotions, ambitions and responsibilities whose lives are impacted“.
A 10,000 job cut would account for just under 1% of the group’s current payroll, which employed 1.54 million people worldwide at the end of September, not counting seasonal workers hired during times of increased activity, particularly for the end-of-year celebrations. The company announced a hiring freeze at its offices two weeks ago. And the workforce has already shrunk since the beginning of the year, when it employed 1.62 million people full-time and part-time.
Amazon has been hiring with a vengeance during the pandemic to meet skyrocketing demand, doubling its global workforce between early 2020 and early 2022. However, the US retail giant’s net income fell 9% year over year in the third quarter. And for the current quarter, the pivotal phase of the year-end celebrations, the group expects growth of between 2% and 8% over the year, anemic by its standards.
Many tech companies that had recruited heavily during the pandemic recently announced social plans, including Meta (Facebook, Instagram), Twitter, Stripe, and Lyft.
SEE ALSO – Termination at Meta: “Marck Zuckerberg thought the rise of e-commerce would continue,” says Chloé Woitier