Amazon plans up to 10.000 layoffs

November 17, 2022 by
Frank Calviño

Amazon plans to lay off approximately 10,000 people in corporate, marketing and technology jobs starting as soon as this week. If the numbers are correct, this will be the largest layoff in the company’s history.

🔥Do you want to know more about international commerce and e-commerce, and also get all the tips and news that might give your company an edge? Subscribe to Cross-Border Magazine and get your digital copy now for free!🔥

The news transpired last week via multiple media outlets, to a mix of disbelief and alarm, due to the fact not even Amazon remains untouched in the midst of this massive global tech companies crisis. 

Bezos' company, so far one of the few tech companies to have relatively surfed the wave of sales reductions affecting the entire e-commerce panorama, has now joined the ranks of Twitter, Meta, Stripe, Salesforce, Microsoft, and Robinhood among many others. 

Amazon devices, human resources, and retail will be hit harder 

The cuts will focus on Amazon’s devices organization, including the voice assistant Alexa, as well as at its retail division and in human resources, said the people, who spoke on condition of anonymity to the New York Times, because they were not authorized to speak publicly.

The total number of layoffs remains to be defined, as it will most likely be run team by team, rather than all at once, as each business unit or team finishes its yearly plans and gets its results reviewed by corporate. 

But, if the number remains close to the initial figure of 10.000, these massive layoffs will represent 3% of the total Amazon corporate workforce, and less than 1 percent of its global workforce of more than 1.5 million, which is primarily composed of hourly workers.

Amazon’s planned retrenchment during the critical holiday shopping season - when the company typically has valued stability - shows how quickly the souring global economy has put pressure on it to trim businesses that have been overstaffed or underdelivering for years.

Microsoft also jumps into the ‘layoffs wagon’  

Another key indicator that the layoffs situation is not a particular issue of a few companies, is the fact that last month Microsoft also announced layoffs for nearly 1,000 employees worldwide. 

While significant, the job losses affected less than one-half of 1% of the company's 221,000 employees worldwide.

The job cuts came across different positions, levels, and geographic regions, Microsoft confirmed.

"Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly," the company told ABC News in a statement. "We will continue to invest in our business and hire in key growth areas in the year ahead."

All in all, it seems clear that the tech and e-commerce sector will be entering a global recession during 2023. 

Google invests $350 million in Flipkart in a bet to control India
Google has invested nearly $350 million in Flipkart, becoming the latest big-name company to back the Walmart-owned Indian startup. Specifically, Flipkart explained in a press release that the tech company...
May 28, 2024
At least 95.8% of Europeans have shopped online during 2024 Q1
At least 95.8% of European consumers shopped online in the first quarter of this year. In the United Kingdom, that percentage was 93%. In the Netherlands, 96% of consumers shopped...
May 27, 2024
Temu's parent company, PDD Holdings, increased its profits by 245% during the 2024 Q1
Chinese group PDD Holdings, owner of e-commerce platform Temu and Pinduoduo, posted an attributable net profit of 27.997 billion yuan (3.592 billion euros) in the first quarter of 2024, an...
May 24, 2024
Top crossmenu

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.