Amazon has planned to lay off thousands of corporate employees.

Amazon plans to lay off thousands

The IT sector is already experiencing a tsunami of job losses, and Amazon is planning to add to it with significant layoffs that may occur as early as this week and affect 10,000 people.

A source with knowledge of the plans who spoke on the condition of anonymity to discuss private company concerns said that the layoffs would mostly affect corporate employees.

The internet sector had assumed an air of invincibility after a decade of exponential development, but Amazon is the latest computer giant to move to aggressively reduce its personnel. This year, Facebook, Twitter, Salesforce, and other companies announced massive layoffs.

The company’s devices, retail, and human resources departments are likely to be affected by the layoffs, the insider said, but an exact number has not yet been determined.

The greatest employment losses in the company’s history will occur if the e-commerce behemoth goes through with the plans, which were originally revealed on Monday by the New York Times.
Amazon refused to comment on the story. The Washington Post is owned by the company’s founder and executive chair, Jeff Bezos.

Amazon stated earlier this month that it will be halting all new hires for its white-collar workers, a decision that would persist for at least “the next several months.”

The IT industry, a darling of investors, is in peril after years of astonishing expansion. Following months of warning indications, such as digital start-ups finding it increasingly difficult to attract money, a recent wave of layoffs has occurred.

“The clock has struck midnight on hypergrowth for big tech,” said Dan Ives, a financial analyst with Wedbush Securities, adding that “a recession is on the doorstep” due to the massive job losses at some of the major internet businesses. For months, several economists have issued recessionary warnings.

Amazon has been expanding for much of its existence, from Prime memberships to cloud computing to Whole Foods.

Amazon has been expanding for much of its existence, from Prime memberships to cloud computing to Whole Foods.

Particularly since it started offering Prime memberships, pioneering cloud computing, and acquiring premium supermarket chain Whole Foods, Amazon has spent the majority of its existence expanding. The business, which reported $469.8 billion in revenues the previous year, said last summer that it would pay $3.9 billion to acquire healthcare provider One Medical.

However, the business has scaled down several of its newer projects under CEO Andy Jassy, who succeeded Bezos last year. These programs include some of its brick-and-mortar retail ventures and its main healthcare service, Amazon Care. This year, Amazon closed down a network of four-star shops in addition to its physical bookstores.

The proposed employment cutbacks also signal a dramatic turnaround for Amazon, which over the past 10 years has hungrily employed tens of thousands of workers for its corporate headquarters and warehouses. At the end of September, the corporation employed more than 1.5 million workers, an increase of 5% over the previous year.
Around the globe, Amazon employs more than 330,000 people in business and technology, so the anticipated 10,000 layoffs represent around 3% of the company’s white-collar staff.

Due to individuals spending more time at home and doing more online shopping during the epidemic, Amazon’s sales increased. However, the business admitted in May that it had hired too rapidly in its warehouses to keep up with the pandemic spike, which had already begun to taper down. Experts claim that due to the demanding working conditions, the corporation regularly has more than 100% turnover in a given year, making widespread layoffs in its warehouses improbable.
High inflation and more frugal shoppers led the business to release a depressing holiday season projection, which sent its shares plunging last month. The Christmas season is generally Amazon’s busiest time of the year. Despite a more than 39 percent decline in value since the start of the year, Amazon is still valued at more than $1 trillion.
During a conference call to discuss the company’s third-quarter profits, Amazon Chief Financial Officer Brian Olsavsky stated, “We are seeing indicators all around that people’s budgets are tight and inflation is still high.” “Like other businesses, we are planning for what may be a slower growth era.”

An observer who spoke anonymously out of concern for consequences at work said that Amazon leaders recently indicated during meetings with rank-and-file personnel that the business was preparing for probable hiring restrictions and layoffs.

However, leadership made an effort to convince staff in at least one of those sessions that not all teams would be eliminated.

As we approach the busiest shopping season of the year, the corporation cannot afford to reduce its logistical operations; thus, Amazon’s warehouses continue to employ.There are no indications that the firm wants to go back on its October statement that it will add 150,000 employees countrywide during the Christmas season.
The forthcoming layoffs at Amazon will only affect a tiny portion of its workers, but they demonstrate that future expenditures will be “more thoroughly reviewed,” according to retail expert Neil Saunders.
The sector is cutting jobs as computer companies issue economic warnings and scramble to reduce expenses after hiring binges during the epidemic. According to analysts, the Federal Reserve’s ongoing interest rate rises, which are expected to continue, have put pressure on IT businesses that depend on low-cost lines of credit to cover high employment costs and capital-intensive services.

According to Wedbush’s Ives, the widespread layoffs will have an impact on larger tech hubs like Silicon Valley and Austin.

He predicted that the Silicon Valley ecosystem, which includes everything from restaurants to real estate, will see an earthquake-like ripple effect.

Since U.S. unemployment has been staying around 3.7 percent since last month, the job market has been a source of support for the entire economy this year. However, technology is the “canary in the coal mine,” warning of a potential global economic downturn in the next year, according to Ives.
The sector is cutting jobs as computer companies issue economic warnings and scramble to reduce expenses after hiring binges during the epidemic. According to analysts, the Federal Reserve’s ongoing interest rate rises, which are expected to continue, have put pressure on IT businesses that depend on low-cost lines of credit to cover high employment costs and capital-intensive services.

According to Wedbush’s Ives, the widespread layoffs will have an impact on larger tech hubs like Silicon Valley and Austin.

He predicted that the Silicon Valley ecosystem, which includes everything from restaurants to real estate, will see an earthquake-like ripple effect.

Since U.S. unemployment has been staying around 3.7 percent since last month, the job market has been a source of support for the entire economy this year. However, Ives said that technology is the “canary in the coal mine,” warning of a potential global economic downturn in the next year.

According to Saunders, “Amazon will continue to be a behemoth in retail and beyond.” But it won’t find growth as simple now. However, it also presents a chance for more agile firms to consider how they may capture some share. Its shift in course is a warning to others in retail.

The pace of tech layoffs has picked up recently. Facebook and Instagram’s parent company, Meta, last week eliminated 11,000 workers, or 13.3% of its staff. Shortly after buying the social network, the new CEO of Twitter, Elon Musk, reduced his employees by half. 13 percent of the employees at the ride-hailing company Lyft were let go. Since the beginning of last month, crowdfunding website GoFundMe, private financial company Stripe, and real estate marketplace Zillow have all announced layoffs.

From: Haotees.com

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