In what could possibly be the biggest tech layoff till date, e-commerce giant Amazon will reportedly downsize on staffing with over 17,000 cutbacks.
The Biggest Layoff in Tech and E-commerce
As economic uncertainty increases, Amazon stopped hiring new employees at the beginning of Q4 2022. Subsequently, rumors circulated that the tech giant intended to let go of over 10,000 workers.
The devices division, human resources, and retail were among the departments disproportionately impacted by the layoffs.
According to an article in The WSJ citing sources familiar with the matter, the number of people who may be affected by Amazon’s ongoing layoffs, which began last year, could be significantly higher than previously reported.
CEO Andy Jassy informed employees of the reduction in staffing in a memo. The downsizing, which began in the previous year, had initially been predicted to affect approximately 10,000 employees.
It is now believed that more than 17,000 people may be impacted by the layoffs, which are expected to be carried out over the next several weeks.
As of Q3 2022, Amazon employed 1.5 million people, with most of them working at the company’s warehouses. According to anonymous sources, the current round of layoffs largely affects management and administrative staff.
Amazon has successfully navigated through challenging economic times in the past, and will continue to do so, Mr. Jassy stated.
Effects of COVID-19 on Tech Now Wearing Off?
The outbreak of the Covid virus globally greatly benefited the company, as online retailers saw a surge in business as consumers flocked to them. To keep up with the rapid increase in demand, Amazon quadrupled its logistics network and hired many new workers.
As demand for the company’s products began to decline as the situation returned to normal and consumers started shopping in physical stores again, Amazon initiated a comprehensive review of ways to cut costs and increase profits.
Approximately 1% of the company’s global workforce and 3% of its corporate workforce were initially affected by the layoffs, but the current number is much higher. Some people in the community have expressed concern that these developments are not a good sign.
Tada images/ shutterstock.com
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