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According to the New York Times report, Amazon is planning to lay off about 10,000 employees in ‘Corporate and Technology’ across the world.
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This job cut will focus on the company’s devices unit, retail division, and human resources.
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The unit that houses Alexa had posted an operating loss of more than $5 billion a year. This is a huge loss for the company as the customers are using devices for only a few functions.
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It was procrastinated by the company that consumers have less money to spend due to rising prices.
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As per the Times report this layoff represents about 3 percent of its corporate staff.
What are the valid reasons for this Job cut?
- The main reason is the contraction in demand as the world comes out of the Covid-19 pandemic. The lockdown forced people to stay indoors and made them spend more time on social sites; consume more content online and hence buy more items online. After the end of the pandemic, as people return to offices and explore the outside, online engagement reduced.
- Indicator of recession makes the situation worse. A global recession is expected by the experts. This fear will reduce the demand for nonessential products.
What about other Tech Giants?
Many big tech companies are rethinking their staff needs. Amazon was the latest company to discuss its efforts to shrink staff. Here are some other tech giants:
- Alphabet In., Google’s parent company has been decreasing its recruitment. The company said that they are also facing economic headwinds and that is why slowing the process of hiring new employees.
- Apple Inc. also planning to slow hiring and spending at some divisions of the company to fight economic down.
- Twitter Inc. initiated a hiring freeze job offer in may after Elon Musk’s acquisition of the company.
- Carvana Co., an online used car retailer, laid off 2500 employees in May.
- Coinbase Global Inc. a cryptocurrency exchange cut off 18% of its staff in June to prepare for economic headwinds.
