Amazon has decided to lay off another 9,000 employees, taking the tally of employees the internet behemoth has fired in the last 3 months to over 27,000. The company is not the only one on a firing spree, and the recent layoff rounds that have taken place at all the major tech giants hint that the industry is fast heading towards a worrisome recession period.
In January 2023, Amazon fired 17,000 employees and barely after 2 months, the company decided to let go another 9,000 employees. This is the biggest ever layoff in the history of the company, and experts believe that this could be just the tip of the iceberg as the market is showing no sign of revival in the near future. In fact, many believe that the scenario is bound to get worse in the months to come, which may force companies to cut down their workforce even further.
Andy Jessy, CEO – Amazon.com, Inc. (NASDAQ:AMZN), in an email to employees, made an attempt to justify the decision to lay off a record number of employees. He believes that the move was inevitable and is in the best interest of the company for the long term.
The memo by Amazon CEO Andy Jassy describes how the company plans to reduce costs and cut headcount in light of the uncertainty that is making economic conditions and future prospects fade off fast. Inside the company, the job roles are redefined, and positions are being reprioritized or eliminated, resulting in the layoff of over 27,000 employees since the beginning of this year. The company is committed to continuing to optimise its processes in a bid to get the most of work done with a reduced headcount.
Amazon plans to invest in long-term customer experiences that “improve customers’ lives” and improve Amazon’s overall performance. Jassy recognizes the current challenges, and thanks all those who were affected by the company’s layoff decision.
The letter also details the support the company will extend to affected employees, including a termination payment, transitional insurance benefits and support for job placement.
The memo also highlights that Amazon is eliminating staff from AWS (Amazon Web Service), PXT, Advertising, and streaming service Twitch.
Layoff at Amazon: Just the beginning?
Amazon is not the only company feeling the heat due to the tough economic conditions and is forced to fire a record number of employees. Most major tech giants, including Meta, Google and Microsoft, have laid off tens of thousands of employees since the beginning of 2023. In fact, the number and frequency of layoffs at Meta are so problematic that people are now sceptical about the future growth prospects of the social media giant.