As we get closer to a possible recession, most businesses are feeling some type of hit, including the one that helps run the world, Amazon.
Amazon has 1.5 million employees globally. If 20,000 are laid off, that is equivalent to 6% of Amazon’s corporate staff and 1.3% of the global network. Corporate staff will receive a 24 hour notice and severance pay, which is reflected in their company contracts.
A source within the company states:
“There is no specific department or location mentioned for the cuts; it is across the business. We were told this is as a result of over-hiring during the pandemic and the need for cost-cutting as the company’s financials have been on a declining trend,” said the source.
Amazon employees are ranked from levels 1 through 7 and no level will be safe from layoffs. It was the New York Times that first reported 10,000 employees would be cut, but now we know that number is 20k and growing.
The layoffs are the largest staff cut in the history of the company. They are working hard to cut costs.
ComputerWorld cites:
“Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments. Those decisions will be shared with impacted employees and organizations early in 2023,” CEO Andy Jassy wrote.
If Amazon is cutting employees in massive numbers, it is a sign of the times that we should be aware of markets continuing to become more volatile.
Here’s Pat explaining helpful tips during a Recession:
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