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Amazon Plans To Fire 10,000 Employees Over The Next Week

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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.

UK Employees

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.

Overall Revenue

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.

Twilio Dismisses 11% of Its Workforce

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As the customer interaction platform strives to control expenses during the general economic slump, Twilio today revealed that it will lay off between 800 and 900 employees, or 11% of its workforce. CEO Jeff Lawson described the layoffs in a statement to the workforce, attributing in part to them Twilio’s explosive expansion over the past several years.

Lawson asserts that the cuts will primarily affect R&D, Twilio’s general and administrative divisions. The impacted employees, who were informed this morning, will get at least 12 weeks’ pay in addition to one week for each year of employment with Twilio and the value of Twilio’s upcoming shares vest.

According to Lawson, Twilio’s talent acquisition team would compile a list that terminated workers can choose to join and share with other businesses that could be hiring as well as “investors who know many such businesses.”

According to paperwork submitted to the U.S. Securities and Exchange Commission, Twilio predicts that the staff reduction will cost between $70 million and $90 million, with the majority of expenses occurring in the third and fourth fiscal quarters of the business in 2022.

Twilio, a publicly traded company situated in San Francisco, has been aiming for profitability by 2023, according to CNBC. As demand for its cloud services increased during the epidemic, the company’s headcount nearly doubled. Twilio purchased Zipwhip, a toll-free messaging service provider, for $850 million in 2021, and the data security platform Ionic Security.

But as people began to work in person again, sales plummeted.

Twilio’s Q2 2022 sales growth was 41%, the lowest since the December quarter in 2017, as the company faced a cyberattack that compromised the data of more than 100 customers. In its most recent fiscal quarter, Twilio – while exceeding Wall Street’s expectations – reported a loss of $322.8 million on $943.4 million in revenue.

Shares were up about 1% on news of the layoffs; Twilio’s stock has fallen about 73% this year.