According to several US media, the platform and its various subsidiaries will lay off around 10,000 workers
Amazon confirmed on Thursday that it has indeed begun laying off some of its staff to deal with the financial crisis, after days of rumors about it in the e-commerce giant.
“The economy remains in a difficult state and we have been hiring at a rapid pace in recent years,” Andy Jassy, the US group’s chief executive, said in an internal memo to employees posted on Amazon’s website.
According to several American media, the platform and its various subsidiaries will lay off about 10,000 workers.
Mr Jassi did not confirm this number. However, he clarified that the process started yesterday Wednesday and will last until the beginning of next year.
The first groups to be cut are those on the platform’s electronic devices (eg Kindle e-readers). Amazon stores and warehouses will also be affected.
“There will be more job cuts as officials make adjustments. The employees will be informed about these decisions and the departments concerned at the beginning of 2023″, explained the managing director.
“I’ve been in my position for about a year and a half and this is, without a doubt, the most difficult decision I’ve had to make,” he added, assuring that he’s aware of the fact that it’s not just about “positions” but about “people with feelings, ambitions and responsibilities” that will suffer “a blow to their lives”.
Amazon’s workforce reduction by 10,000 employees will mean a reduction of just under 1% of its current wage costs.
The company employed 1.54 million workers worldwide at the end of Septembernot counting seasonal workers, who are recruited at times of increased activity, such as during the year-end holiday season.
The company announced two weeks ago a hiring freeze in its offices. Its workforce was already down from the start of the year, when it employed 1.62 million people on fixed-term or temporary contracts.
The Amazon has done massive hiring during the pandemic due to a surge in demand, doubling its staff from early 2020 to early 2022.
But the retail and distribution giant saw its net profit shrink 9% year-on-year in the third quarter. And this year, which includes the critical holiday season, Amazon expects anemic growth compared to its standards, which it expects to range from 2 to 8 percent year-over-year.
Several other companies in the technology industrywho were hiring massively during the pandemic, they recently announced layoffsnotably Meta (Facebook, Instagram), Twitter, Stripe and Lyft.
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