What are the Implications of Amazon Layoffs to the US Economy? How do Amazon Layoffs Affect the Retail Industry?
Amazon has been a major player in the world of retail, with the company’s dominance in e-commerce and cloud computing. However, they are now facing their first major setback, as they announced a series of layoffs.
The Huge Cost of Amazon Layoffs
The company recently announced in a memo that they are cutting 18000 jobs from its corporate offices, including many in its Seattle headquarters.
The layoffs will affect employees from various departments and levels.
As Amazon had announced that they would be laying off 18,000 employees. This number has continued to grow as the demand for staff lessens and they’re forced to cut jobs in order to save money.
Chief Executive Officer Andy Jassy announced the move in a memo to staff this Wednesday, explaining it was part of the annual planning process.
The reduction is concentrated in the firm’s corporate ranks, mostly Amazon’s retail division and human resources functions like recruiting.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” he said. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”
The Company has acknowledged that it has hired too many people during the pandemic.
Earlier Saturday Salesforce has also announced its year long plans to cut off almost 8000 people that is 10% of its total workforce and also reduce its offices and real estate holdings.