Amazon is cutting a total of 18,000 workers as tech layoffs mount 2023

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The greatest round of layoffs in the e-commerce behemoth’s history, according to Amazon, will result in the elimination of 18,000 employees in total.

CEO Andy Jassy stated in a memo to staff that the business made public on Wednesday, “We normally wait to comment about these outcomes until we can speak with the folks who are directly impacted.” However, we believed it was better to disclose this news sooner so you could hear the details straight from me because one of our teammates externally released this information.

According to Jassy, the company’s brick-and-mortar stores, which include Amazon Fresh and Amazon Go, as well as its PXT organizations, which manage personnel resources and other activities, will be most affected by the layoffs.

He informed the workers of the impending layoffs in November, citing the current state of the economy and the company’s fast expansion in recent years. The job layoffs that had not been numbered earlier were included in the announcement on Wednesday. Along with voluntary buyouts, the business has been reducing costs in other facets of its expansive operations.

One of several major IT corporations cutting staff after actively hiring in recent years is Amazon, which employs 1.5 million people worldwide.

Amazon is cutting a total of 18,000 workers as tech layoffs mount 2023

Customer management software provider Salesforce announced on Wednesday that it is closing certain offices and laying off around 7,000 workers, or roughly 10% of its staff. The layoffs are by far the biggest in the 23-year history of the San Francisco business started by former Oracle executive Marc Benioff, who invented the practice of renting out software functions to internet-connected devices, or “cloud computing.”

In a message to staff, Benioff said, “I accept responsibility for that. As our income surged through the epidemic, we hired too many people prior to this economic slump we’re now facing.”

Just before the epidemic began in January 2020, Salesforce employed roughly 49,000 workers. The current Salesforce staff is still 50% more than it was.

Apple, Facebook parent Meta Platforms, Microsoft, Netflix, Peloton, Twitter, and other tech companies have announced sizable layoffs or scaled back hiring in recent months amid weakening economic growth.

When Mark Zuckerberg, the CEO of Meta, stated in November that his firm would be laying off 11,000 people, or 13% of its staff, he later admitted that he had miscalculated the financial benefits that Facebook and Instagram’s owner was enjoying during the pandemic.

Amazon is cutting 18 000 workers

According to Wall Street analyst Adam Crisafulli of Vital Knowledge, employers “are being proactive in lowering expenses (which will help underpin profitability notwithstanding a harder revenue environment)”

According to outplacement agency Challenger, Gray & Christmas, IT industry companies cut more than 97,000 employees overall in 2022, an increase of 649% from the roughly 13,000 positions lost the year before. The automobile industry, which lost 31,000 people last year, the second-highest number of any U.S. business, was far behind in that regard.

“The overall economy is still creating jobs, though employers appear to be actively planning for a downturn. Hiring has slowed as companies take a cautious approach entering 2023,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.

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