As the outlook for the global economy continues to deteriorate, Amazon layoffs 2023 will happen soon. The company says it plans to layoff more than 18,000 workers.
According to a memo CEO Andy Jassy distributed to staff, several teams will be impacted, including the human resources division and Amazon Stores.
“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,”
-Amazon CEO Andy Jassy
Jassy had previously stated that the e-commerce behemoth would continue to make employment cuts through the beginning of 2023. The fall saw numerous publications indicate that Amazon intended to lay off about 10,000 workers.
18.000 employees expected to be affected by Amazon layoffs 2023
As the pandemic changed consumer purchasing patterns toward e-commerce during the past several years, Amazon and other digital companies greatly increased hiring.
Now that individuals are reverting to their pre-pandemic habits and macroeconomic conditions are deteriorating, many of these ostensibly untouchable digital corporations are suffering whiplash and letting go of thousands of employees via Amazon layoffs 2023.
According to Jassy’s message, executives from Amazon recently gathered to discuss ways to streamline the business and give priority to “what matters most to consumers and the long-term sustainability of our businesses.”
“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,”
According to Jassy, the Amazon layoffs 2023 would provide Amazon with a stronger cost structure so it can explore long-term prospects. However, he described the reductions as a “tough decision,” adding that he is “fully conscious that these position eliminations are terrible for people and we do not take these decisions lightly or underestimate how much they might damage those who are impacted”
He stated that the business will begin informing the affected employees on January 18 due to the widespread reliance of consumers on internet shopping during the pandemic, Amazon’s business originally experienced rapid growth.
Amazon stocks fell about %50 last year
But this year, the business must deal with a return to in-person shopping as well as soaring inflation that has dramatically decreased customer demand causing Amazon layoffs 2023 to happen.
Amazon disappointed Wall Street in October with a Christmas season projection that sorely fell short of analysts’ predictions. The value of the company’s stock decreased by roughly 50% last year. Many other internet entrepreneurs and CEOs, including Jassy, have now acknowledged they miscalculated pandemic demand.
The largest employment cuts in business history, totaling 11,000, were recently revealed by Facebook’s parent company Meta. After Elon Musk acquired Twitter for $44 billion, Twitter also revealed significant employee cutbacks. This week, Salesforce announced a 10% employee reduction.
We also saw Amazon’s name in the 2022 tech layoffs
Tech layoffs began after 2021, a prosperous year for technology. In 2022, 795 IT companies laid off 121,667 workers, and the figure is continuously climbing.
One of the major drivers of the industry in the past has been the North American technology sector. The U.S. tech sector has continuously offered increasing equities and cozy, well-paying positions for more than 20 years. The boot is now on the opposite foot.
In the biggest tech layoffs of 2022, Amazon’s name was at the top with more than 10,000 layoffs. After the onset of the pandemic, social distance rules and quarantine period, and consumers making online shopping a part of their daily lives, Amazon, which hired thousands of employees, became unable to pay its employee expenses with the end of the pandemic, along with changing consumer habits.
Our Amazon layoff 2023 news ends here. For 18,000 employees, the calendar shows January 18. We hope that Amazon employees continue their presence in the industry after the layoffs because 2023 is going to be a great year for technology, especially after what we expect to see at CES 2023.