Amazon to lay off 10,000 employees, Largest job cuts in company’s history

The main reasons of lay offs is the contraction in demand as the world comes out of the Covid-19 pandemic.

By
Sowjanya Boddu
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amazon lay off

Amazon planning to lay off nearly 10,000 employees in corporate and technology across the world, ‘The New York Times’ reported Monday. This follows a spate of sackings and hiring freezes across the tech sector, most prominently by Meta, which laid off over 11,000 employees last week.

The main reason is the contraction in demand as the world comes out of the Covid-19 pandemic.

The pandemic-induced lockdowns forced people indoors and made them buy more online. And spend more time on social media sites, consume more streaming content and play games with others are almost over. This started showing in the numbers of tech companies which were riding a boom for the past few years and hired to sustain the increased demand.

According to the New York Times, citing people familiar with the matter. The upcoming layoffs will be the biggest in the company’s history. Amazon fired roughly 1,500 workers in 2001 during the dot-com crash, though the company’s staff increased significantly in the last 20 years.

Recently, American Tech giants like Meta and Twitter also laid off thousands of staff due to current macroeconomic issues and falling revenue.

The news regarding the layoffs isn’t entirely surprising as the company has been taking strict measures to cut costs. For instance, the company confirmed in a blog post earlier this month that it would freeze hiring on the corporate side to balance “investments with being thoughtful about this economy”.

Amazon plans to lay off 10,000 employees

(NYT) – Amazon plans to lay off approximately 10,000 people in corporate and technology jobs starting as soon as this week, people with knowledge of the matter said, in what would be the largest job cuts in the company’s history.

 

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