Amazon Layoffs To Impact More Than 18,000 Workers

Words by Retail Bum

Amazon Layoffs To Impact More Than 18,000 Workers
Amazon Layoffs To Impact More Than 18,000 Workers

Amazon will be laying off more than 18,000 corporate employees, significantly higher than the number the company had previously announced.

The layoffs are expected to impact 6% of the company’s 300,000 employees, primarily those from the human resources and eCommerce division.

The announcement marks a turn in the human resources strategy of the country’s second-largest employer, which was aggressively competing for talent not too long ago by doubling its base pay ceiling.

This shift has come as the rise in inflation and the ensuing economic slowdown has led both businesses and consumers to cut back on spending and slashed the company’s stock price in half over the last 12 months, Reuters reported.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” said CEO Andy Jassy.

In November last year, the company announced plans to let go of 10,000 employees, roughly 3% of its corporate workforce. The cuts targeted various organizations across the company, including its voice-assistant Alexa team, its retail division, and human resources.

At the end of 2019, Amazon employed 798,000 workers, but by December 31, 2022, the company had 1.6 million full- and part-time employees, a 102% increase. The increase in hiring came as the company overbuilt its infrastructure to support its booming eCommerce business.

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