Why Amazon is laying off more staff than previously planned


by 5paisa Research Team Last Updated: Jan 09, 2023 - 02:46 pm 4.5k Views

In what promises to spell more trouble for the e-commerce sector all over the world, including in India, Amazon is set to sack as many as 18,000 people, more than it had previously announced. 

Amazon.com Inc's layoffs will now stretch to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.

The layoff decisions, which Amazon will communicate starting Jan. 18, will largely impact the company's e-commerce and human-resources organizations, he said.

How significant are these cuts for Amazon itself? Why is the e-commerce giant going in for these cuts?

The cuts amount to 6% of Amazon's roughly 300,000-person corporate workforce and represent a swift turn for a retailer that recently doubled its base pay ceiling to compete more aggressively for talent.

Overall, Amazon employs more than 1.5 lakh workers all over the world. It is the second largest private employer in the US after Walmart.  

When did the layoffs at Amazon actually begin? How many jobs have already been cut?

The world's biggest online retailer began letting staff go in November from its devices division, with a source telling Reuters at the time it was targeting 10,000 job cuts.

In number, its layoffs now surpass the 11,000 job cuts at Facebook-parent Meta Platforms Inc as well as reductions at other tech-industry peers.

Could this impact India?

Yes, as Amazon employs people in their thousands in India, these cuts could also hit India. 

Amazon has already fired several hundred employees in India in the recent past, so expect more sackings in the coming weeks.

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