Amazon starts layoffs this week reported Newspaper The New York Times. It’s expected to be the largest layoff in the history of the e-commerce giant, which plans to lay off around 10,000 employees. The cuts primarily affect Amazon’s device development division, retail, and human resources.
The retailer’s plan to shed thousands of employees was also confirmed by the Wall Street Journal. It was indicated that the reduction will be gradual. According to Amazon, it had 798,000 full-time and part-time employees at the end of 2019 and 1.6 million employees as of December 31, 2021.
The fact that Amazon plans to start layoffs during its critical holiday shopping season shows how badly a deteriorating global economy is hitting the company.
The difficult economic situation in the world is forcing technology companies to resort to layoffs as one of the means to cut costs. Meta last week* announced the layoff of 11,000 employees, which is more than 13% of the workforce, and before that, Twitter laid off about half of the workforce after Elon Musk acquired the miroblogging service. Lyft, Stripe, Snap, and other tech companies have also cut jobs in recent months.
* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.