Amazon layoff: A signal to an ominous start?
17 November, 2022 | Pranay Lad
After Meta and Twitter, Amazon is the most recent technology company to fire employees. What is causing this Big Tech downturn? Why is Amazon's decision to lay off workers important?
In the last several weeks, positions have been slashed at tech titans. One of them, Facebook parent company Meta, announced this week that it would fire 11,000 employees or around 13% of its staff. Additionally, this month, Elon Musk, the new CEO of Twitter, cut the workforce in half.
Employee layoffs at Amazon’s devices division started on Wednesday, hardware leader Dave Limp said in a memo. The e-commerce behemoth announced that following “a deep set of analysis” of the business, it is combining some teams and initiatives in its devices arm.
Because of this, we will lose talented Amazonians from the Devices & Services organisation, Limp stated, “It hurts me to have to offer this news. I want to underline that the Devices & Services division remains a key area of investment for Amazon, and we will continue to innovate on behalf of our customers, even though I know this news is difficult to process.
The Memo did not give any information regarding the number of layoffs, but the job losses occur just before the busy holiday season when the Memo often adds more staff. According to a media source, Amazon intends to fire up to 10,000 workers overall, largely from its device, retail, and human resources divisions. The corporation would make the biggest cuts ever. As of December 31st, 2017, Amazon employed more than 1.6 million people on a full- and part-time basis.
According to Kelly Nantel, a representative for Amazon, some functions have been eliminated as part of the yearly operating planning review process.
“We always examine each of our businesses as part of our yearly operating planning review process to see what we think needs to change. As we’ve gone through this, different teams have made adjustments in light of the present macroeconomic context, which in some cases implies specific roles are no longer required. These decisions are not made lightly by us, and we are striving to support any affected staff “In a report published by the media source on Wednesday, Nantel was cited as saying.
Yesterday, Amazon started informing its staff members of layoffs. Several individuals who were fired by Amazon have posted their firing experiences on Linkedin. The majority of the members worked for the company’s cloud gaming and Alexa departments.
The memo continued, “In instances when workers are unable to secure a new position within the organisation, we will facilitate the transition with a package that includes a separation payment, transitional benefits, and outside job placement assistance.”
Both large and small software organisations have recently let off thousands of employees. The parent company of Facebook, Meta, revealed this week that it has made the largest-ever reductions in staff, firing 11,000 people. The ailing social networking business, now owned by Elon Musk, has also let go of half of its 7500-person workforce.
The Seattle-based business posted two losses in a row this year, primarily due to write-downs of the value of its stock investment in Rivian Automotive, a start-up producing electric vehicles. Investors were unhappy with the company’s weaker-than-expected revenue and bleak forecasts for the current quarter, despite the fact that merchants normally do well during the holiday shopping season. The company returned to profitability during the third quarter.