Jeff Bezos: Amazon Plans to Fire About 10,000 Employees

There has been news about different layoffs this year. Amazon Inc., is planning to layoff about 10,000 of their employers beginning from this week. The 10,000 layoff is said to be the biggest reduction rate so far in the company. The group's devices organization, retail division, and human resources would be the main targets of the job cuts.

As each sectors completes its planning, the number of layoffs is still not certain. It is probably going to happen team by team rather than all at once, according to one source. But if it maintains at approximately 10,000, it would represent roughly 3% of Amazon's corporate staff. It is less than 1% of its more than 1.5 million global workforce, which is mainly made up of hourly workers. Amazon is planning to make cuts during the crucial holiday shopping season, when the company has historically valued stability. This demonstrates how swiftly the faltering global economy has put pressure on the e-commerce firm to cut operations that have been overstaffed or underperforming for years.

Following Twitter and Facebook, the American corporation would be the most recent technological company to lay off staff. This year, the e-commerce behemoth increased the cash salary cap for its tech employees by more than twice as much, citing "a extremely competitive labor market. Amazon Web Services, Inc. (AWS), a division of the company was inaugurated its first location in Lagos, Nigeria, earlier this month. The business claimed that the opening of the new office was part of its effort to serve the country's expanding clientele and business partners.

Why the Amazon Layoffs

Due to the pandemic, Amazon experienced its most lucrative period in history. Customers flocked to online shopping and businesses flocked to its cloud computing services. Amazon expanded and experimented to uncover the next big things, more than doubling its workforce in only two years. According to three people, Amazon officials met with institutional investors this week, just as the company's stock dropped to its lowest point since the beginning of the pandemic and lost $1 trillion in value since Andy Jassy became CEO last year.

Additionally, Amazon has recently shut down or scaled back several projects. These include Amazon Care, a service that offered primary and urgent medical careb ut was unable to attract enough customers. Scout, a cooler-sized home delivery robot that, according to Bloomberg, employed 400 people. Fabric.com, a division that sold dressmaking supplies for 3 decades.

In September, Amazon stopped hiring for a number of its smaller teams. In its primary retail operation, it ceased filling more than 10,000 unfilled positions in October. It put a temporary halt to corporate hiring two weeks ago throughout the whole organization, including its cloud computing section. According to calculations made by John Blackledge a Cowen & Company analyst who has watched Amazon for ten years. The company's primary e-commerce division has been losing billions of dollars this year. He said, "They need to go through everything." Simply put, "This is not sustainable."

After the pandemic's demand boom and rapid expansion. Amazon's retail business which includes its offline and online retail operations as well as its logistics division has been struggling. The business has stated that it has postponed expansion plans. Also, has informed investors that it believes consumer confidence is low.