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Wednesday, April 17, 2024

Mass layoffs at Amazon, about 18,000 employees. Commentary by Andy Jassy, ​​CEO of Amazon

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Due to the global economic outlook, Amazon plans to lay off more than 18,000 employees, CNN reported, noting that many tech-based companies have recently announced thousands of job cuts. Among the companies mentioned are Meta and Twitter.

According to the information that Amazon CEO Andy Jassy provided to his subordinates, the largest cuts will be made to the HR and retail departments. – Companies that have been operating for a long time go through different phases. They don’t expand expansively every year, Jassy explained.

In November, Jassy announced that about 10,000 jobs would be cut. employees, reminded CNN.

Read also: The largest wave of layoffs in the history of the giant

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Macroeconomic conditions are deteriorating

Amazon and other tech companies have massively increased their workforce over the past few years as the pandemic has caused a shift in consumer habits. More people bought goods online.

Now, many of these companies are laying off thousands of workers as customers return to pre-pandemic habits and macroeconomic conditions worsen. “The layoffs will help Amazon pursue long-term opportunities with a stronger cost structure,” Andy Jassy said.

He called the cuts “a difficult decision”, noting that he is “deeply aware … how much these decisions can affect the lives of those affected by the layoff.” He added that people who will be made redundant will be informed about it from January 18.

Job cuts at Meta and Twitter

“Amazon’s share value fell by about 50 percent last year,” CNN reported, noting that many tech-based companies have recently announced job cuts in the thousands, such as Meta and Twitter.

Like Jassy, ​​many other founders and CEOs of tech companies have admitted that they were wrong in their assessments of the demand created by the pandemic.

Read more: Twitter closes its offices ‘effective immediately’

Main photo source: EPA/Guillaume Horcajuelo

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