Amazon To Lay Off 18,000 Workers As It Reduces Costs.
Amazon plans to cut more than 18,000 jobs, the largest number in the firm’s history, as it battles to save costs.
The online giant which employs 1.5 million people globally, did not say which countries the job cuts would hit, but said they would include Europe, the BBC reports.
Most of the job losses will come from its consumer retail business and its human resources division.
Boss Andy Jassy cited the “uncertain economy” for the cuts, saying it had “hired rapidly over several years.”
“We don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted,” he said in a memo to staff.
He said the announcement had been brought forward due to one of the firm’s employees leaking the cuts externally.
“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” he added.
Amazon has seen sales slow after business boomed during the pandemic when customers bored at home spent a lot online.
A potent combination of a downturn in advertising revenues due to businesses seeking to save cash, alongside consumers spending less as the cost of living crisis bites, is hitting tech firms hard.
Other big tech firms including Meta – which owns Facebook, Instagram and WhatsApp – and cloud-based business software firm Salesforce have also both recently announced big cuts.
Amazon has already announced that it’s cutting back on projects like the Echo (better known as Alexa) and delivery robots – which were nice-to-haves but not actually making money.
Anecdotally, there’s a tendency in Silicon Valley for firms to hire and retain talented workers on attractive salaries, even if they’re not immediately needed, primarily in order to stop them working for rivals. This culture is a luxury which big tech can no longer afford to maintain.
Amazon employees affected by the cuts are expected to be told by 18 January.
Source: nigerianobservernews
