On January 4th, 2023, Andy Jassy, CEO of Amazon acknowledged in an update to his team that the previously announced workforce reduction will now encompass a staggering 18 000 job cuts.
He divulged that the layoffs, which Amazon will start to report on January 18th, will profoundly impact their e-commerce and human resources departments. This cutback comprises 6% of Amazon’s total personnel. It is a major change for the retailer who has boosted its base wage cap within recent months in order to attract more talent with greater fervor.
In Jassy’s memo, he stated that the annual planning process is complicated right now due to economic instability and our rapid hiring over the years. However, Amazon has successfully navigated tough times in the past and will continue to do so moving forward.
Amazon is one of the largest employers in the private sector, with a total employee base surpassing 1.5 million workers across its warehouses and other locations — even outstripping Wal-Mart as America’s #2 provider of jobs!
As inflation forces businesses and customers to tighten their budgets, the company is anticipating a slower growth rate. Amazon shares have plummeted in value by half over the last 12 months; however, our organization remains optimistic about its future potential despite this setback.
In November, the Seattle-based corporation initiated employee reductions in their hardware division, upon which a source confirmed that Amazon was aiming for 10,000 job losses.
The 11,000 job cuts announced by Facebook’s parent company Meta last year were surpassed today when Amazon revealed that their layoffs would be even larger. This is a trend seen in the tech industry as many companies are reducing their workforces to save money.
The Mita Group employs about 87,000 employees worldwide, according to September 30, 2022 figures, and during the recent publication of the latest disappointing quarterly results, Group Chairman Mark Zuckerberg said that the number of employees in the company should not increase by the end of 2023, even He should back off a bit.
The Corona pandemic saw a rise in demand for e-commerce and online services whilst simultaneously experiencing economical stagnation and increased labor costs, leading to many companies downsizing the number of employees they had hired previously.
Now, with consumer demand affected by higher prices and borrowing costs, many are considering job cuts, and Amazon shares have lost more than 40% of their value so far this year, and fell 1.1% in mid-day trading to $99.67 a share.
It is noteworthy that Amazon has become one of the largest private companies in the world in recent years, with more than 1.6 million employees until 2021. But this growth did not come easily, as Amazon is fighting with all its energy to prevent US warehouse employees from forming unions, amid their dissatisfaction with Low wages and constant stress .
