Amazon confirms the layoff of more than 18,000 employees in the face of the economic crisis

Amazon announced on Wednesday that it will cut more than 18,000 jobs in its workforce, including some in Europe, citing a “uncertain economy” and the fact that the online retail giant had hired quickly during the pandemic.

“Between the reductions we made in November and the ones we share today, we plan to eliminate just over 18,000 positions.“, said Andy JassyCEO of the US group, in a statement to his employees.

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The reduction plan is the largest among recent job cut announcements affecting the US technology sector.

It’s also the most severe cut in the history of the Seattle-based company.

Jassy assured that the management of the company was “deeply aware that these job eliminations are hard on people, and we do not make these decisions lightly”.

“We are working to support those affected and offer them packages that include severance pay, temporary health insurance and external help to find work.”, he added.

Some of the layoffs will take place in Europe, according to Jassy, ​​who added that the affected workers will be informed as of January 18.

The sudden announcement, Jassy noted, was being made because “one of our teammates leaked this information externally”.

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The specialized newspaper Wall Street Journalciting sources close to the retail giant, previously reported that job cuts at Amazon could affect some 17,000 employees, a higher number than estimated.

The company had already announced plans to cut some 10,000 jobs in November.

“Amazon has weathered uncertain and difficult economies in the past and we will continue to do so”Jassie said.

At the end of September, the group had 1.54 million employees worldwide, not including seasonal workers who work in periods of greater activity, especially during the year-end holidays.

During the pandemic, the company made massive hires to meet demand, thus doubling its staff globally between 2020 and 2022.

However, its net profit plunged 9% year-on-year in the third quarter.

Large platforms in the technology sector – many with business models based on advertising – are facing budget cuts and advertisers reducing their expenses in the face of inflation and rising interest rates.

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Meta, the parent company of Facebook, announced in November the cut of 11,000 jobs, approximately 13% of its workforce.

Twitter, bought in October by tycoon Elon Musk, laid off about half of its 7,500 employees.

While Snapchat cut approximately 20% of its employees in August, about 1,200 people.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.