On Wednesday, Amazon CEO Andy Jesse posted a public note to staff on the company’s official website, telling 18,000 employees to be laid off from the company. The company will start laying off employees starting January 18, he said. The memo states that this will have a major impact on the company’s e-commerce and HR organization. Along with this, the unstable economy has also been cited.
Around 3 lakh employees work in the corporate section of Amazon. According to this dismissal announcement, now 6% of the employees in this sector will be removed from the company. The company recently doubled its base salary to hire more talented staff. After Walmart Inc, it is the second largest company in the United States with a total employee base of more than 1.5 million. This also includes warehouse staff. The company has cited low growth. About which the company has said that due to rising inflation, consumers have started to cut back on spending. At the same time, the company’s share price had also fallen to half of last year’s price.
In early November, Amazon had also announced the dismissal of 10,000 of its employees. In announcing the reduction of its 10,000 employees, the retail company had said that due to declining sales, the pressure on the company to cut costs has increased. On the other hand, the global recession was cited even then. Amazon, with a workforce of more than 1.5 million, has now increased the number of employees to be laid off from 10,000 to 18,000.
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