Amazon CEO Andy Jassy has confirmed the ecommnerce and technology giant will continue with laying off employees into 2023.
In an attempt to trim headcount, around 10,000 workers are due to be let go, with only some employees being given option to accept voluntary buyouts, CNBC reported
“I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time,” Jassy said in a memo to workers.
Laura Petrone, principal analyst at research firm GlobalData, tells Verdict that these layoffs highlight the vulnerability of Big Tech in the new economic reality, following a macroeconomic slowdown.
She says Amazon is having to make cuts to its workforce after over investing in the pandemic-driven boom in online spending.
“They invested heavily based on the assumption that these habits would persist post-pandemic,” Petrone says.
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“These companies now need to readjust their expectations. For some, the headwinds from high inflation and rising prices will push them to rethink their business model in the long term.”
The looming threat of a recession and the need to prioritise profits over workers has also been a factor in increased layoffs across Big Tech.
“The reality is that no tech firm is immune to recession – with Meta announcing major job losses and now Amazon following suit,” Alexia Pedersen, vice president at online learning platform O’Reilly, tells Verdict.
“Employees should prioritise L&D to safeguard their role and make themselves an invaluable asset to their organisation.”
Amazon’s announcement follows a growing trend of layoffs in Big Tech. Tech and social media giants like Microsoft and Meta have laid off thousands of workers in the last few months as the “tech bloodbath” continues.
Elsewhere, Elon Musk allegedly fired thousands of Twitter contract workers with no warning, as he continues to relentlessly scale down the blue bird’s workforce.