Amazon will lay off 18,000 employees, 80% more than it had announced


As we have already commented in several articles, the pandemic made electronic commerce grow exponentially and both eCommerce and large technology companies experienced a good times. Personnel were hired, development was invested and projects were financed with a view to the future.

However, with the almost return to normality, the growth of the sector entered a plateau and people returned to their previous consumption habits. The ground gained was not lost, but growth expectations were moderating. With this panorama, different companies -large and small- in the sector were announcing personal reduction: Twitter, Meta, Amazon and counting.

But yesterday there was another hit: the e-commerce giant, Amazon announced that the company will lay off more than 18,000 employees of its staff, and not 10,000, as had advanced last november. Is about 80% more layoffs than expected. The reason: one uncertain economyhasty hiring decisions during the pandemic and the loss of 49.6% of the value of the company on the stock market. The official announcement was made by himself. Andy Jassywho replaced Jeff Bezos as CEO last summer.

The layoffs will affect 1.2% of the Amazon workforce

Although we knew that the amazon numbers they had not been expectedthe clipping will affect 1.2% of its workforce worldwide, which at the end of September had 1.54 million employees, not counting temporary workers who work during the times of greatest commercial activity.

There are several teams that will be affected by the layoffs, however, most of them are concentrated in the human resources department, which is known as People, Experience and Technology, or PXT, and the Physical Stores unit.

jassy He stated that company management is “deeply aware that these job eliminations are hard on people, and we do not make these decisions lightly.” And he added: “We are working to support those affected and we offer them packages that include a redundancy paymenta health insurance transient and outside help to find work».

Similarly, he indicated that the dismissal notice It will arrive and will be effective from next Wednesday January 18.

Other layoffs in the sector

Amazon is not the only one that has made the tough decision to lay off thousands of people from their jobs, now that the tide of digitalization has turned back. Although it will go down in history as the technology company with the largest number of layoffs.

Then a long controversy of bickering on Twitter -which has not ended yet-, Elon Musk started a mass layoff of employees, coming to eliminate more than half of its staff (about 7,500 people).

GoalFacebook’s technology parent, joined the wave in November 2022, announcing that it would fire more than 11,000 workers, number that represents the 13% of its staff total. In addition, they will not hire new staff during this year.

Other important layoffs in the sector were those of Snapchatthat laid off 20% of its employees in August (approximately 1,200 people); the technology company , that laid off 6,000 employees; Y salesforcethat laid off 10% of its workforce (about 8,000 employees).

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