The workforce reduction will largely affect the company's e-commerce and human resources departments, making up 6% of Amazon's approximately 300,000-person corporate workforce. The news is a surprise, as Amazon recently raised its base pay to attract talent.
Amazon Braces for Slow Growth amid Soaring Inflation
As inflation continues, businesses and consumers are cutting back on spending, leading Amazon to prepare for slower growth. The company's share price has also decreased by 50% over the past year. Amazon began laying off staff from its devices division in November to cut around 10,000 roles. The tech industry saw more than 150,000 job losses in 2022, which is still on the rise. Salesforce announced plans to eliminate 10% of its staff, numbering nearly 8,000 as of October 31.
Amazon Layoffs Surpass 11,000 Cuts Announced by Meta Platforms Inc
Amazon's layoffs now surpass the 11,000 cuts announced by Meta Platforms Inc last year. The reversal of Amazon's fortunes has been significant, as the company went from being essential for delivering goods to locked-down homes during the pandemic to overbuilding for demand.
CEO Andy Jassy disclosed the news in a public staff note before informing affected employees due to a leak. Amazon plans to pay severance and file necessary legal notices for the mass layoffs. Despite the uncertain economy, Jassy stated, "Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so."
