Over the course of the year, we’ve seen several massive companies laying off massive amounts of their employees. Twitter recently cut about half of its workforce, and Meta laid off over 11,000 of its employees. Now, Amazon may be the next massive company to have a mass layoff
This report comes from the New York Times and the Wall Street Journal (via CNBC). Amazon, the gigantic e-commerce empire is expected to lay off a whopping 10,000 of its employees over the next week. The company has not commented on this yet, so you’ll want to take this with a grain of salt.
The sources have it that Amazon is going to lay off personnel with an emphasis on people in its devices organization, retail, and human resources departments.
While the number of laid-off employees is comparable to that of Twitter’s and Meta’s layoffs, it means a lot less to Amazon as a whole. Meta’s layoff accounted for 13% of its personnel and Twitter’s accounted for about half. Amazon’s mass layoff, however, only accounts for about one percent of the company’s global workforce. Also, it only accounts for about 3% of the company’s corporate employees. This means that we don’t expect Amazon to do any major restructuring or cancel projects like we’re seeing with Twitter and Meta.
Why the mass layoff?
The reasons are similar to Meta’s job cut. For starters, the economic downturn is a major factor in this. The struggling economy is having a negative effect on several companies’ finances.
Another reason is the fact that, during the height of the pandemic, Amazon went on a hiring spree. It increased its workforce from 798,000 at the end of 2019 to about 1.6 million at the end of December 2021. It more than doubled its workforce, and that is taking its toll on the company now during the economic fallout.
What makes this worse is the fact that this is still up in the air. Since the company has not announced anything official, the number of laid-off employees could change. It could be more, or it could be less. Only time will tell. All we know is that a lot of people are going to be getting some bad news over the next couple of days.