17 Nov 2022

Amazon Begins Largest Round Of Layoffs In Its History In America

New York: Amazon began laying off corporate employees this week in America. It has become the latest of the tech giants, after Twitter and Meta, to reduce its workforce in an increasingly uncertain economic climate.

Company to cut 3 percent of its corporate workforce: Amazon is likely to retrench about 10,000 workers, or 3 percent of its corporate workforce in corporate and technology roles. 

The cuts are expected to be the e-commerce giant’s largest round of layoffs in its history, marking a big turnaround for a company that has hired aggressively over the past decade.

On Wednesday, a day after the layoffs began, Amazon published an email from Dave Limp, the senior vice president of devices and services, confirming cuts had occurred.

Tech giants are significantly slowing their pace of hiring: A projected downturn for the US economy has led tech giants to significantly slow their pace of hiring or freeze it altogether. Similar to Meta, Amazon saw record momentum during the early phase of the covid pandemic and overinvested based on those record profits.

The cuts are likely to impact mostly areas such as retail, human resources and devices. Earlier this month, Amazon announced a broad hiring freeze among its white-collar workforce.

Amazon's spokesperson Kelly Nantel said as part of the annual operating planning review process, certain roles are no longer necessary.

Amazon employees were called into meetings: Amazon employees were called into meetings with their managers across the country, and many were told they had two months to find another job internally or accept severance payment.

Amazon employees said they have been told little about the layoffs — they have not received any companywide communication or notices.

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