Image Source: Tada Images/Shutterstock.com
In the latest round of layoffs beginning in November 2022, Amazon will have reduced its corporate workforce by 5%. In the coming weeks, the total number of layoffs in this period will reach 18,000, equivalent to 1.2% of Amazon’s total workforce. CEO Andy Jassy attributed the cuts to economic uncertainty in a blog post outlining the timeframe employees would be notified with communications on the latest cuts beginning on January 18th.
These layoffs follow patterns throughout the tech world of job cuts over the last year, reflecting uncertainty in the sector. Companies such as Twitter, Meta and Lyft all announced significant layoffs in the latter half of 2022. Amazon’s announcement of 18,000 layoffs marks the largest reduction in workforce by a tech company over the last year. With cuts focused on the company’s Stores and PXT (People, Experience & Technology) divisions, the 1.2% reduction in the workforce exceeds analysts’ estimates from November 2022.
Amazon experienced a significant rise in sales throughout 2021 and 2022, prompting the company to expand its workforce. This growth saw the company make 500,000 new hires internationally in 2020 and 300,000 in 2021 to meet increased demand. The spike in e-commerce sales resulting from the Covid-19 pandemic did not prove sustainable, however, as consumers returned to in-store shopping as lockdowns eased.
This led to Amazon announcing a freeze on hiring earlier this year before layoffs began. In November, the company announced plans to make further layoffs at the time estimated at 10,000. Amazon had clarified this number could change depending on the outcome of an annual review underway at the time. With operating losses of $2.9 billion announced in the most recently reported quarter, Amazon has seen shares drop by almost half over the last year. The most recent cuts reflect a sector bracing for continued economic uncertainty.
Image Source: Tada Images/Shutterstock.com
In the latest round of layoffs beginning in November 2022, Amazon will have reduced its corporate workforce by 5%. In the coming weeks, the total number of layoffs in this period will reach 18,000, equivalent to 1.2% of Amazon’s total workforce. CEO Andy Jassy attributed the cuts to economic uncertainty in a blog post outlining the timeframe employees would be notified with communications on the latest cuts beginning on January 18th.
These layoffs follow patterns throughout the tech world of job cuts over the last year, reflecting uncertainty in the sector. Companies such as Twitter, Meta and Lyft all announced significant layoffs in the latter half of 2022. Amazon’s announcement of 18,000 layoffs marks the largest reduction in workforce by a tech company over the last year. With cuts focused on the company’s Stores and PXT (People, Experience & Technology) divisions, the 1.2% reduction in the workforce exceeds analysts’ estimates from November 2022.
Amazon experienced a significant rise in sales throughout 2021 and 2022, prompting the company to expand its workforce. This growth saw the company make 500,000 new hires internationally in 2020 and 300,000 in 2021 to meet increased demand. The spike in e-commerce sales resulting from the Covid-19 pandemic did not prove sustainable, however, as consumers returned to in-store shopping as lockdowns eased.
This led to Amazon announcing a freeze on hiring earlier this year before layoffs began. In November, the company announced plans to make further layoffs at the time estimated at 10,000. Amazon had clarified this number could change depending on the outcome of an annual review underway at the time. With operating losses of $2.9 billion announced in the most recently reported quarter, Amazon has seen shares drop by almost half over the last year. The most recent cuts reflect a sector bracing for continued economic uncertainty.
