The company has been in an unprecedented downsizing due to economic uncertainties and active recruitment for the past two years.
The American concern is that Amazon will lay off more than 18,000 employees as part of the layoffs, its CEO Andy Jesse announced on Thursday, January 5.
The decision was made as part of planning for 2023 amid “economic uncertainty and in connection with the recruitment of a large number of employees over the past two years,” the company explained. The cuts will mostly affect sales and hiring, Jesse said.
The departure of 18,000 people will be the largest one-time cut in Amazon’s history, according to AFP. The layoffs began in 2022, when 10,000 people were planned to leave the company, The Wall Street Journal recalled.
Amazon is shrinking after growth during the pandemic
Amazon has significantly increased its numbers amid the coronavirus pandemic, with online commerce on the rise. In the first quarter of 2022, the company employed 1.62 million people worldwide, but in September this number dropped to 1.54 million, writes AFP.
In the third quarter of last year, Amazon’s net income fell by nine percent compared to the same period in 2021. Based on the results of the last three months of 2022, the company expects insignificant growth by its standards – from 2 to 8% in annual terms.
The cuts at Amazon are in line with a trend among other tech companies that have admitted they have been expanding staff too quickly in recent years, the WSJ notes.
Facebook’s parent company Meta announced in November that it would lay off 11,000 workers. In October, Twitter’s new chief, Elon Musk, fired nearly half of its 7,500 employees. At the end of August, Snapchat also cut staff by 20%, the publication lists.
A source: Russian Service DW
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Source: korrespondent
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