The E-commerce company, Amazon, is set to lay off up to 10,000 of its workers. This was disclosed in a report by New York Times.
The job cuts include the devices group, those responsible for the Alexa voice assistant, the retail division, and human resources.
With Amazon’s over 1.6 million employees globally, the 10,000 makes it less than 1% of its workforce. This is the 4th mass layoff by a tech giant in November alone. Other tech giants such as Twitter, Meta, and the like have also laid off a majority of their employees.
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Amazon To Lay Off 10,000 Workers: Why The Layoff
The e-commerce giant warned of a slowdown in growth for the holiday season, which is a period when great sales are made.
The low patronage of its products was because consumers and businesses have less money to spend due to rising prices.
Amazon has spent much of this year trying to maintain its steady growth as shoppers resumed pre-pandemic habits. It also delayed its warehouse openings and froze hiring in the retail group.
Hence the decision by Chief Executive Officer Andy Jassy to streamline operations amid slowing sales growth and economic uncertainty.
Tough Year Indeed
With the recent layoffs, the year 2022 will go down as one of the toughest years for global tech giants. With Stripe, America’s fintech giant announcing it was cutting 1,120 jobs, Elon Musk also fired 3,700 out of about 8,000 Twitter workers.
After Twitter, Meta followed with a massive 11,000 head cuts, and Amazon is set to lay off another 10,000 into the labor market.
Unfortunately, analysts are projecting the layoff frenzy will extend to Q1 2023 as the global economy becomes unpleasant.
Conclusion
With thousands on the street again, the cost of living gets tough. We, however, hope that the companies can get back on their feet and there would be a massive reduction in layoffs as soon as possible.
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