20k jobs under the axe at Amazon
The need to streamline costs is said to be forcing Amazon to downsize
It was only a few days ago that Amazon went on a hiring spree. The post-pandemic recruitment drive had made the company hop on to headlines, and everyone seemed to applauding the move. However, the headline space is now bringing back Amazon for right the opposite.
Amazon is likely to lay off 20,000 employees in the coming months across various departments, it is being reported. According to a report that detailed the possible lay-off plans by Amazon, staffers belonging to from Grades 1 to 7 in the company, are expected to be affected by the layoffs, a report said. It may be recalled that a November report in the New York Times had hinted that Amazon might send off up to 10,000 employees.
1.3% of Amazon’s total workforce likely to go
This is really happening. Going by what we hear, the company has asked the managers to identify employee performance problems over the past few days. It could result in the zeroing in on as many as 20,000 employees who would face the axe. This number would translate to close to 1.3 percent of Amazon’s total workforce, which stands at 1.5 million globally, non-permanent workers included.
Though a confirmation is yet to come by, it is said that the laying off process might soon begin. And when it does, the employees will be served with a 24-hour notice and severance pay.
Significantly enough, this move by the company would make it the largest layoff in Amazon’s history. It is being said that the layoffs would happen across the business, and no specific department has been singled out.
Company over-hired during pandemic
The need for sending away employees at this juncture has been due to the company’s over-hiring during the Covid-19 pandemic, when it had needed more hands to ensure smooth functioning of the business owing to added demand. Further, this had also led a downward trend in its financial position, that the company has been forced to cut jobs on a massive scale.
A few days ago, company CEO Andy Jassy had shot off a letter to employees saying that the company is indeed weighing downsizing. Though he had not specified how many jobs will be gone, it looks like the number will be close to 20,000.