Amazon Is Set to Lay Off Thousands of Employees

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Author: Betty Evans

Starting this week, Amazon intends to fire about 10,000 employees from corporate and technical positions. According to those aware of the situation, this would result in the most significant employment lay-offs in corporate history.

Amazon’s Cuts

The Amazon devices division, which includes the voice assistant Alexa, will be the prime goal of the lay-offs. According to the individuals, who spoke anonymously: the company’s layoffs would also concentrate on its retail segment and human resources.

The fact that Amazon is planning to make cuts during the crucial holiday shopping season demonstrates how swiftly the faltering global economy has pressured Amazon to cut divisions that have been overstaffed or underperforming for years.

Amazon could also be the most recent technology company to fire employees, despite recently fighting to keep them.

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The Dynamic of Amazon through the years

Due to the pandemic, Amazon experienced its most prosperous period as customers rushed to online shopping and businesses flocked to its cloud-based services.

Amazon doubled its workforce in two years and funneled its winnings into expansion and experimentation to find the next big things. However, earlier this year, as the pandemic’s bullwhip snapped, Amazon’s growth dropped to its lowest rate in 2 decades. 

Overinvesting and expanding resulted in high costs for the company, while changes in consumer behavior and rising inflation hurt revenues.

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Amazon also recently shut down and scaled back on several projects, including Amazon Care, a service that offered primary and urgent medical care that could not attract enough consumers.

The company decreased its workforce by about 80,000 from April to September, primarily among its hourly workforce.

 In September, Amazon stopped hiring for a number of its smaller teams. It stopped filling over 10,000 vacant positions in its primary retail division in October. It ceased corporate hiring two weeks ago for the upcoming several months across the corporation, including its cloud technology section.

Alexa and other Devices

Internally, devices and Alexa have always been considered vulnerable to cuts. Alexa and associated products shot to the top of the business priority list because Amazon tried to develop the top voice assistant. Many leaders believe that assistants may replace mobile phones as the most crucial consumer interface in the future.

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Amazon has sold lots of gadgets with Alexa functionality. But according to the company, the products frequently have low-profit margins, and other possible revenue streams, like voice shopping, have not gained traction.

Final Words

After the pandemic’s rapid expansion and a spike in demand, Amazon’s retail sector has been struggling. The business has stated that it has reduced its expansion plans and has informed investors that it believes customer confidence is low.

This week, Amazon plans to fire about 10,000 employees from corporate and technical positions, resulting in the most significant employment lay-offs in corporate history. The Amazon devices division, which includes the voice assistant Alexa, will be the prime goal of the lay-offs.

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