Amazon Plans To Lay Off 10,000 Employees!

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Amazon Plans To Lay Off 10,000 Employees!
क्यूँ निकाला जा रहा है Employees को?

Amazon had about 1,608,000 full-time as well as part-time employees as of December 31, 2021.

From April-September, the company reduced its head count by almost 80,000 people, primarily reducing its hourly staff through high attrition.

Amazon is planning to lay off as many as 10,000 employees in “corporate and technology” across the world

The layoffs will focus on Amazon’s devices organisation, which deals with products like voice assistant Alexa, as well as its retail division and human resources.

Amazon is likely to roll out the layoffs team by team rather than all at once

Sacking 10,000 employees would roughly represent 3% of the company’s corporate employees and less than 1% of its global workforce of nearly 15 lakh

 In 2001, Amazon had cut 1,500 jobs, its 15% workforce at the time. Again in 2018, Amazon had laid off a few hundred employees after a rapid expansion period.

In recent months, the e-commerce company has shut down or cut off on several of its products and services, including health care scheme Amazon Care that failed to attract customers and Fabric.com, an arm of the company that had been selling sewing supplies for 30 years.

Amazon is also shutting down its home delivery robot Scout division that employed 400 persons, reported Bloomberg.

The main reason is the contraction in demand as the world comes out of the Covid-19 pandemic

The pandemic-induced lockdowns forced people indoors and made them buy more online, spend more time on social media sites, consume more streaming content, and play games with others, are almost over

This started showing in the numbers of tech companies which were riding a boom for the past few years and hired to sustain the increased demand.

In two years, Amazon doubled its work force and used the profit to expand and experiment

However, in July, Amazon reported its slowest quarterly growth rate during the three month period of April-June with only 7.2% increase in revenue as the highs from the pandemic began to recede

As people return to offices and rediscover the outdoors, engagement across platforms is dropping, along with revenue. As a result, fewer people are needed to manage these platforms.

Companies that thought the pandemic bump will be sustained by changed user behaviour are realising this is not the case.

To make matters worse, there are indicators that a global recession is in the offing and is already hitting demand for non-essential products in many markets. A purchase that can be put off, is being deferred in many cases.

For workers, Amazon has been one of the most stable employers in tech. The layoffs, which have not yet been officially announced by Amazon, will be the largest in the company’s history.

Amazon trimming its workforce is a signal that consumer sentiments are low, especially weeks before the holiday season which is usually the best time of the year for e-commerce.

Meta laid off over 11,000 workers last week.

Twitter, laid off 3,500 employees (~50% workforce)

Lyft, Stripe, Snap and other tech firms have also laid off workers in recent months.

Apple has not announced layoffs but is slowing down hirings as it sees a drop in demand across products and services.