The economic situations have hit many industries and Amazon too is feeling the heat. Following the footsteps of Twitter and Meta, this company too is planning to fire many of its employees.
2022 has seen Elon Musk firing 3,500 employees from Twitter earlier this month and Meta too sacked around 11,000 employees in November. This laying-off of 11,000 workers is the biggest in the history of Meta. In year 2001, the company had fired 1500 workers in the dot.com crash. As of now, Amazon employs 1.5 million people from across the world and this includes the people who are employed on an hourly basis too.
Reports say that employees from the retail and human resources will be affected as will be the employees from Amazon’s virtual assistant Alexa. The company plans to fire employees, team by team when they finish their work rather than sacking them all at once. If the company fires around 10,000 people, it would be around 3% of Amazon’s corporate employees and 1% of the employees worldwide.
The company has already been talking of cost cutting, so this news is not too surprising. The company had said that it would not be hiring in the corporate sector to balance the investments and were being thoughtful of the economic situation.
The Alexa department of the company has not been profitable since a long time and is operating at a loss of 5 billion dollars. So, the company will not hire more people in this department.