Amazon begins laying off thousands of workers

Amazon begins laying off thousands of workers

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After decades of near-constant expansion, Amazon began laying off company employees on Tuesday, becoming the latest tech giant to shed its workforce in recent weeks.

Amazon is expected to cut about 10,000 employees, about 3 percent of its corporate workforce. The company began communicating the layoffs to employees on Tuesday afternoon, said people familiar with the matter, who spoke on condition of anonymity to describe sensitive matters.

Amazon plans to cut thousands of company employees

Amazon did not respond to a request for comment.

Within hours of the layoffs beginning, employees began posting on LinkedIn and the anonymous workplace app Blind to say they were being cut and were looking for new jobs.

The cuts will primarily affect areas such as retail, staffing and equipment. Earlier this month, Amazon announced a sweeping hiring freeze for its employees that would last at least “the next few months.”

The cuts are expected to mark the e-commerce giant’s biggest round of layoffs in its history and mark a major turnaround for the company, which has been aggressively hiring over the past decade.

Amazon is expected to continue hiring at its warehouses, where it’s adding staff to support the busy holiday season.

In recent weeks, Twitter, Salesforce, Facebook parent Meta and other tech companies have announced significant layoffs or hiring freezes after months of warning signs such as: B. Tech startups that have a harder time raising capital.

Dan Ives, a financial analyst at Wedbush Securities, told the Washington Post Monday that the layoffs could be a signal of an imminent recession. Tech companies, he said, “have been significantly bloated, and they’re not built for a softer economy like the one we’re seeing.”

Meta cut 11,000 jobs, or 13 percent of its workforce, last week. The Lyft transport service has also reduced its staff by 13 percent. The fintech company Stripe and the real estate market Zillow have also announced layoffs for October.

Earlier this month, Twitter CEO Elon Musk cut half of his company’s workforce shortly after acquiring the social network.

Twitter cuts staff as Musk era begins

Mass layoffs mark a sharp turn for Amazon, which has been expanding for much of its history. At the end of September, it employed more than 1.5 million workers, a 5 percent increase from a year earlier. (Amazon founder Jeff Bezos owns The Post.)

Amazon has seen tremendous growth during the coronavirus crisis as people spend more time at home and increasingly do their shopping online. In May, the company admitted it had been stocking up at its warehouses too quickly to keep up with demand, which was cooling by then.

Additionally, amid high inflation and increasingly price-conscious consumers, Amazon issued a disappointing forecast for the holiday season — usually the busiest time of the year — and caused its shares to plummet last month. Amazon’s stock is down almost 39 percent since the start of the year, despite still having a market cap of over $1 trillion.

Mandy Dean, 39, was a contract recruiter in Chicago for Amazon Luna, the company’s cloud gaming platform. The company let her contract expire in September, although she said she was on her way to an interview to go full-time.

It didn’t come as a complete surprise when Dean said she saw the signs in August, when the software engineering jobs she had to fill dwindled.

“It was bad timing for all of this,” Dean said. “I really enjoyed working for Amazon. I liked the culture, the people I worked with, the job itself. It was a difficult situation but there was nothing I could do.”

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