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Faced with an economic crisis, Amazon in turn is shutting down

Amazon confirmed on Thursday (November 17) that it has begun layoffs to combat the economic crisis, following days of rumors about the e-commerce giant’s welfare plan. “The economy continues to be tough, and we’ve been hiring rapidly in recent years“Andy Jassi, head of the American group, said in an internal note published on the Amazon website. According to several US newspapers, the platform and its various affiliates will lay off around 10,000 employees. Andy Jassi would not confirm the number, but said the process began Wednesday and will continue into early next year.

The first teams concerned were those dealing with branded electronic devices (such as Kindle readers). Physical warehouses will also be affected. “More job cuts will follow as executives make adjustments. These decisions will be communicated to affected employees and organizations in early 2023.– explained the general director.

“The hardest decision”

I’ve been in my role for about a year and a half and this is without a doubt the hardest decision we’ve had to make.“, he announced, assuring you to be aware that it is not only about that.notes“but”people with emotions, ambitions and responsibilities whose lives will be affected“.

The 10,000 job cuts would represent just 1% of current payroll at the group, which had 1.54 million employees worldwide at the end of September, excluding seasonal workers hired during periods of increased activity, particularly the year-end festivities. The company announced a hiring freeze in its offices two weeks ago. And its workforce has already shrunk since the start of the year, when it employed 1.62 million people full- or part-time.

Amazon has retaliated during the pandemic to meet the explosion in demand by doubling its global staff between early 2020 and early 2022. But the US retail giant saw its net profit fall 9% year-on-year. the third quarter. And for the current quarter, the crucial time of year-end celebrations, the group expects anemia to grow by its benchmark of between 2% and 8% over the year.

Many tech companies that have seen massive hiring during the pandemic have recently announced social programs, including Meta (Facebook, Instagram), Twitter, Stripe and Lyft.

Source: Le Figaro

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