Amazon has joined the ranks of tech titans cutting off thousands of employees.
According to the New York Times, the e-commerce giant Amazon will eliminate up to 10,000 workers this week. It is also the largest layoff in the history of Amazon. Amazon announced a large number of layoffs as tech titans such as Twitter and Meta disclosed layoffs in the media.
Meta has revealed intentions to lay off 11,000 staff over the past week, while Elon Musk’s Twitter social networking startup has cut off more than half of its employees and 4,400 contract workers. The cutbacks at Amazon have an impact on the company’s product business, especially Alexa products. The departments of human resources and retail sales will be targeted.
Less than 1% of Amazon’s global staff and 3% of its corporate workforce have been laid off. Amazon reported 798 thousand full-time and part-time employees as of the end of 2019, and 1.6 million full-time and part-time employees as of the end of 2021. The New York Times reports that the number of employees who will be laid off may alter.
Next week is the Christmas shopping season, a very significant time for Amazon, therefore they will likely hire more employees than usual. After Andy Jesse assumed the role of CEO in July 2021, the company prioritized cost-cutting to maintain liquidity in the face of slowing sales and a global economic slump.
Amazon Telehealth service, as Amazon has decided that it would no longer call the corporate function on the retail side, has been discontinued in recent months. All except one US call center and Amazon Glow’s video-call offering for youngsters have been closed. In addition to liquidating 68 Amazon retail outlets in the United States and the United Kingdom, Amazon Pop Up and Amazon 4-Star Amazon Books bookstores were also closed. The cancellation of warehouse location expansions. Likewise, it has been shuttered.
Amazon’s market value has slipped below $1 trillion for the first time since April 2020, when it topped $1 trillion. Amazon stock has down 41% this year and the S&P 500 is down more than 14%, making 2008 the worst year ever for the stock market.