Amazon’s online store is cutting more than 18,000 jobs worldwide as part of plans to cut costs in the largest job-cutting program in its history.
There will be job losses in the UK and Europe, though exact numbers are not given. The jobs most at risk were described as “corporate” positions rather than Amazon’s sprawling warehouse complexes.
The results of the annual review showed that the cuts at the world’s largest retailer, which employs about 1.5 million people worldwide, go well beyond the 10,000 jobs reportedly scheduled in November.
He said he identified new job cuts as part of an in-depth review of his operations and under pressure from slowing demand and fears of a recession.
Amazon CEO Andy Jassi told employees, “Amazon has a history of overcoming volatility and economic hardship, and we will continue to do so.”
He said most of the cuts will be made in Amazon’s retail and recruitment divisions, and the company will alert affected workers later this month.
Mr Yassi said planning was “more difficult due to the unstable economy and we have been hiring quickly in recent years.”
Amazon is bracing for a likely slowdown as rising inflation has spurred businesses and consumers to cut spending and Amazon’s share price has halved over the past year.
He said Amazon broke the news before notifying affected employees based on the Wall Street Journal leak. Amazon must file legal notices for mass layoffs and confirm that it intends to pay for the layoffs.
More than 75,000 employees work in the UK, 25,000 people were employed in 2021 amid a surge in online shopping during the pandemic, and another 4,000 people will work until 2022. Amazon also operates 19 Amazon Fresh stores and seven Whole Foods Market stores.
Job cuts come as GMB union members working at Amazon’s Coventry warehouse plan to go on strike on January 25 over a wage dispute.
The company has previously said it is hiring too many workers during the pandemic as demand for its services soared.
Amid a sharp slowdown in e-commerce growth last year, as shoppers returned to pre-pandemic habits, Amazon froze recruitment and delayed reopening warehouses. and stopped hiring for his retail group. The company then began making cutbacks, the first of which was in Amazon’s division that makes the Alexa digital assistant and the Echo smart speaker.
Many technology companies are cutting jobs due to problems in the global economy. The layoff of more than 18,000 Amazon employees will be the largest number of layoffs ever by a tech company, surpassing the 11,000 jobs laid off by Facebook parent company Meta Platforms last year.
Software company Salesforce, which owns business messaging app Slack, said it laid off about 10% of its workforce, the equivalent of about 8,000 employees. The company also says it is working to reduce its holdings.
In an email to employees, co-founder Marc Benioff acknowledged: “As our revenues have increased due to the pandemic, we have hired too many employees, which has led to the economic downturn we are currently facing, for which I take responsibility. ”
Source: I News
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