The newest major technology corporation to initiate a mass layoff is Amazon. The largest retailer in the world is reportedly prepared to begin laying off approximately 10,000 employees in its corporate and technology divisions in the coming days.
On July 5, 1994, Jeff Bezos launched Amazon from his garage in Bellevue, Washington. It started out as an online bookstore but has since evolved into many different product categories, earning the nickname “The Everything Store.”
The estimated number would be equivalent to 3% of Amazon’s corporate staff, or 1% of its 1.5-million-person workforce. Shares of Amazon have lost more than 40% of their value in 2022.
Some of the most influential technology corporations in America have reduced their workforces due to the threat of a recession, putting an abrupt end to years of growth.
A publication reported that Amazon will prioritise its retail and human resources departments as well as its devices division. A request for feedback from the organisation received no response.
The business warned it had overhired during the pandemic and had previously implemented a hiring freeze and stopped some of its warehouse expansions. Additionally, it has taken steps to close off some areas of its operations by shelving plans for things like a personal delivery robot.
Despite a 15% increase in overall revenue in the most recent quarter, the company has remained concerned about the forecast as the slowdown spreads to other industries, including its long-profit-boosting cloud computing division, Amazon Web Services.
Amazon joins a long list of other tech firms that have announced layoffs in an effort to signal an impending economic collapse. Included in the list is Meta, the parent company of Facebook, Instagram, and WhatsApp, which recently announced plans to eliminate 11,000 jobs.
According to a survey by Challenger, Gray & Christmas, which analyses such announcements, US-based tech companies have cut more than 28,000 jobs overall this year, more than double the number from a year ago.