Several significant IT businesses, including Cisco Systems Inc., Intel Corp., Meta Platforms Inc., Qualcomm Inc., and Salesforce Inc., are also reducing their workforces.
Digital Desk: Amazon.com Inc. is about to begin another round of significant job cuts as it grapples with slowing online sales growth and prepares for a possible recession.
The corporation made the largest employment cut in its history earlier this month when it revealed that it was letting go of more than 18,000 people from its corporate levels.
The Amazon Devices and Services division, which creates the Alexa digital assistant and Echo smart speakers, was first hit the hardest by the eliminations when they first began last year. The retail division and human resources will be primarily impacted by the most recent round, which is set to start on Wednesday.
Even though the reductions only account for around 1% of the entire workforce, which also includes tens of thousands of hourly warehouse and delivery workers, they affect about 6% of Amazon's 350,000 corporate workers worldwide.
CEO Andy Jassy wrote in a note to staff earlier this month, "Amazon has weathered uncertain and harsh economies in the past, and we will continue to do so. "These improvements will enable us to pursue our long-term opportunities with a stronger cost structure."
The biggest online retailer in the world spent a substantial portion of last year adjusting to a significant slowdown in e-commerce growth as consumers resumed their pre-pandemic behaviours. Amazon paused hiring for its retail division and postponed warehouse openings. After extending the freeze to the corporate personnel of the business, it started making cuts.
Several significant IT businesses, including Cisco Systems Inc., Intel Corp., Meta Platforms Inc., Qualcomm Inc., and Salesforce Inc., are also reducing their workforces.
Jassy stated in his memo that the Seattle-based business would offer affected employees severance, temporary health insurance, and job placement.
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