Amazon initiates job cuts affecting 18,000 people
Amazon continues to trim its workforce with a round of layoffs, affecting a staggering 18,000 employees. As the tech giant implements its cost-cutting measures, employees are receiving notifications of their termination.
This move comes hot on the heels of Microsoft's announcement of cutting 10,000 jobs, signalling a difficult period ahead for the tech industry. These layoffs paint a grim picture for tech workers, as the industry braces for trying years ahead.
In what is being touted as the largest job cut in its history, Amazon is finalising a layoff plan that would affect 18,000 workers in the US, Canada and Costa Rica.
The world’s largest e-commerce company became the latest in a long line of tech companies to trim its ranks on Wednesday.
These layoffs come at a time when the Jeff Bezos-led company tries to grapple with slowing online sales growth and preparing itself to face a possible recession as the world economy takes a nosedive.
A Bloomberg report said that this round of Amazon layoffs is also most likely expected to affect the retail and human resources (HR) division of the company. Before this, when Amazon layoffs happened last year, they initially impacted the company’s devices and services group, one which builds Alexa digital assistant and Eco smart speakers.
Amazon CEO Andy Jassy in a letter to employees wrote, “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so......These changes will help us pursue our long-term opportunities with a stronger cost structure.”
Amazon's reduction of headcount shows the recent trend of tech layoffs that is putting pressure on the job market.
Several other companies following the same include Microsoft, Facebook parent Meta, Twitter, Salesforce and others.