Amazon is having the largest mass layoff in the company’s history, even though it only accounts for less than 1% of its global workforce. Over the next week, around 10,000 Amazon employees are going to be laid off. This includes about 3% of the company’s corporate staff. Now, we have news that the job cuts are also going to affect Amazon Alexa and Luna employees.
To get you up to speed, Amazon recently elected Andy Jassy as the company’s CEO. Since he took over, he has been looking to reduce costs at the company. Thus, the company has to make some major sacrifices to make ends meet.
This is necessary, as certain situations have been leading to some financial woes for the multi-trillion-dollar company. For starters, during the pandemic, Amazon went on a hiring spree boosting its global workforce from 798,000 to north of 1.6 million between 2019 and 2021. This is because of the massive boost in online ordering due to covid-19 lockdowns. With the pandemic cooling down, there’s not much need for that many employees.
Also, the global economy is in a tough spot. This is causing several companies to have to make unfortunate compromises; Amazon is on this list.
Amazon is having job cuts in the Alexa and Luna departments
According to CNBC, Amazon is lightening the load in a few key departments. These departments, as you can imagine, aren’t quite as crucial as the main eCommerce departments. Amazon does make money from other ventures, but the majority of its income comes from its e-commerce departments.
Reports say there will be job cuts among the Amazon Alexa and Amazon Luna departments. Alexa is the company’s voice assistant and it’s become a staple for the brand. This is why it’s a bit surprising that the department is getting job cuts.
As for Amazon Luna, this seems a bit more ambitious. Amazon Luna is the company’s cloud gaming service. Since there are already more developed cloud gaming platforms like GeForce Now and Xbox cloud gaming, it’s no surprise that the company is bringing the hammer down on this department.
We’re not sure how long these major companies are going to need to have mass layoffs, but we don’t expect it to end anytime soon. This year, we’ve seen companies like Twitter, Meta, Netflix, T-Mobile, Verizon, Niantic, and more have to let go of a chunk of their employees.