Layoff: According to sources, Amazon plans to let off thousands of employees and implement cost-cutting measures because the last several quarters have not been profitable. According to the New York Times, the corporation might terminate up to 10,000 employees as soon as this week.
If the overall number of layoff remains around 10,000, it will be the largest layoff in Amazon’s history. It would account for less than 1% of a corporation with over 1.6 million employees worldwide. According to unidentified sources, the job layoff would target the devices group, including the one in charge of the Alexa voice assistant, as well as the retail division and human resources.
Following a months-long investigation, Amazon has advised staff in some unproductive operations to look for new positions inside the company, according to the Wall Street Journal.
Slowdown
The study comes just weeks after Amazon warned of a slowdown in growth during the hectic holiday season when it used to produce the most revenue. According to Amazon, this layoff is because rising costs have caused individuals and businesses to have less money to spend.
The world’s largest online retailer has spent much of this year adjusting to a significant slowdown in e-commerce growth as consumers reverted to pre-pandemic habits. Amazon has postponed warehouse openings and halted retail hiring. Amazon CEO Andy Jassy has pledged to restructure operations in the face of sluggish sales growth and economic uncertainties.
Because the group’s voice-activated devices have yet to become must-have gadgets, they frequently end up in consumers’ closets, the Alexa division has long been vulnerable to downsizing.
“Amazon’s growth plummeted to the lowest rate in two decades, as the bullwhip of the pandemic snapped,” according to the NYT story, after having its “most profitable age on record” during the COVID-19 epidemic years, which saw an exponential increase in online consumer spending. Amazon is the latest technology business to make significant cuts to its workforce in preparation for a possible economic slump.
Layoff in Meta and Twitter
On November 9, Meta, Facebook’s parent company, revealed intentions to lay off 11,000 staff. This figure represents approximately 13% of the company’s workforce. Following the sackings, Meta CEO Mark Zuckerberg wrote a lengthy post in which he accepted responsibility. He, too, blamed the Covid-19-induced acceleration in tech firms, which did not go as planned.
Layoff were expected when Elon Musk purchased Twitter. However, the manner in which they were carried out has prompted criticism of the billionaire. First, Musk fired Twitter CEO Parag Agrawal, CFO Ned Segal, and legal, trust, and safety head Vijaya Gadde.
This was followed by mass layoff on November 4, 2022, with Twitter employees being notified via email of the impending job cuts. Employees were also instructed to return home if they were on their way to work. Musk fired roughly 3700 employees or half of the company’s workforce. Then, on November 14, Platformer reported that Twitter had laid off approximately 4400 of its 5,500 contract workers. In India, almost the entire team was fired.
Layoff in other companies
Apple has not announced layoff, but it is slowing hiring due to a drop in demand for its products and services. Snapchat’s parent company, Snap, was among the first social media companies to announce layoff. In August of this year, it laid off approximately 20% of its workforce. Before the layoff, Snap had a total workforce of around 6,400 people. The layoff impacted departments such as mini-apps and games, as well as employees at the social mapping Zenly.
Stripe, Salesforce, Lyft, Booking.com, iRobot, and Peloton, among others, have announced job cuts. Stripe, a financial services company, laid off 14% of its employees. Companies in India, including Byju’s, Unacademy, and others, have also laid off a number of employees. Byju’s, one of India’s most valuable startups, has laid off 2500 employees.
According to an Axios report, Microsoft layoff nearly 1000 employees across the globe. Later, the company confirmed the job cuts to media outlets and stated that revenue is expected to slow. While Intel has not yet announced job cuts, Bloomberg reports that the company will lay off nearly 20% of its workforce. Intel has yet to confirm the figure. The decision was made as the PC market continues to decline. In October, Intel’s Habana Labs laid off about 10% of its workforce or 100 people.
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