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.

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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. 

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