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Amazon layoffs hit over 18,000 workers, most in the latest technology Wave

Amazon.

com Inc.’s layoffs will affect more than 18,000 employees, the highest number of layoffs reported at a major tech company in the past year as the industry pulls back amid economic uncertainty.

The Seattle-based company announced in November that it was beginning layoffs among its corporate workforce, with cuts focused on the appliance business, recruiting and retail. At the time, the Wall Street Journal reported that the cuts would total about 10,000 people. Thousands of these cuts began last year.

The remainder of the cuts will bring the total number of layoffs to more than 18,000 and will come in the coming weeks. From September Amazon AMZN -0.79%

employed 1.5 million people, most of them in the camps. The layoffs are concentrated in the corporate ranks of the company.

On Wednesday, after the Journal broke the news of the extent of Amazon’s layoffs, Chief Executive Andy Jassy addressed the cuts in a blog post. “Amazon has weathered uncertain and difficult economies in the past and we will continue to do so,” said Mr. Jassy. He added that most of the cuts will come from Amazon’s retail and recruitment sectors. The blog post says the company will notify affected employees later this month.

Amazon has been one of the biggest beneficiaries of the Covid-19 pandemic as customers flocked to shop online. The rush into Amazon’s diverse businesses, from e-commerce to groceries to cloud computing, has fueled the company’s years of growth. To keep up with demand, Amazon doubled its logistics network and hired hundreds of thousands of workers.

As demand began to wane and customers started shopping in-store again, Amazon launched a broad cost-cutting scrutiny to reduce unprofitable units, the Journal reported. During the spring and summer, the company made targeted cuts to cut costs, closing physical stores and business units like Amazon Care. Amazon later announced a company-wide hiring freeze before deciding to lay off employees.

Many tech companies have cut jobs as the economy turns sour. The layoffs of more than 18,000 employees at Amazon represent the highest number of layoffs by a tech company in recent months, according to figures published on Layoffs.fyi, a website that tracks events as they appear in media reports and company publications.

The trend has affected companies like Amazon and others, which have acknowledged they’ve been growing too fast in many cases. Parent Facebook Metaplatforms inc

said it would cut more than 11,000 workers, or 13% of its workforce, which would contribute to Lyft’s layoffs inc,

hp inc

and other technology companies. On Wednesday, Salesforce inc

said it was laying off 10% of its workforce. Co-Chief Executive Marc Benioff said the enterprise software provider hired too many employees as revenue soared early in the pandemic. “I take responsibility for that,” he said.

Authors: Dana Mattioli at dana.mattioli@wsj.com and Jessica Toonkel at jessica.toonkel@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source: Crypto News Deutsch

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