Amazon will Terminate 10,000 Employees Ahead of Holiday Shopping Season

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Experts believe nobody is now safe as the major tech companies are constantly terminating their employees. The reports of the New York Times came out amid the massive termination of workers from Meta and Twitter. Recent reports have confirmed that Amazon is also planning to lay off at least 10,000 of its workers. The upcoming job cuts from Amazon will undoubtedly affect its corporate workers.

Amazon’s corporate sectors include human resources, retail division, and employees working on devices for the company like Alexa (voice assistant). Keep in mind that Amazon reportedly maintains more than 1.5 million people around the world. The recent move of terminating 10,000 workers doesn’t seem like a considerable percentage from the viewpoint of the company.

The announced worker’s elimination from Amazon amounts to around 0.7%. This amount is significantly a smaller termination compared to Twitter’s announced cuts. It is important that the new head of Twitter, Elon Musk, announced the termination of around 50% of its workforce. However, Amazon is also a much larger company and its planned cuts are equal to the entire employees of Twitter.

Amazon will Start Termination Operations this Week

Meanwhile, the figure of 10,000 employees’ termination is a massive step and generates more problems just before the holidays. But the cuts from Amazon will reportedly happen in small waves, instead of recreating baseless chaos of Twitter’s bigger cuts. A reliable news outlet cnbc.com also reported a similar story related to the Amazon employee’s termination.

The outlet reported that Amazon has planned to lay off around 10 thousand employees in the corporate and tech sectors. The retailer will reportedly start the termination operation this week. Moreover, The New York Times and The Wall Street Journal also said Amazon is planning to cut thousands of workers. The recent announcement affected Amazon’s shares on Monday, as its shares closed down at 2%.

Meta Announced the Termination of 11,000 Employees

The planned termination is considered the biggest in the history of the company. The report indicated that it would initially hit Amazon’s devices, human resources, and retail department. However, the reported employee terminations are less than 3% of Amazon’s corporate employees and just 1% of its global workforce. The report also pointed out layoffs at other tech companies.

Last week, Meta announced that the platform is terminating at least 13% or around 11,000 of its employees. However, Twitter has eliminated more than half of its workforce after Elon Musk finalized a $44 billion purchase deal. Keep in mind that Amazon reported 798,000 workers at the end of 2019. But the reported numbers boosted by around 102% and reached 1.6 million full & part-time workers at the end of 2021.

Amazon Often Increases Employees During the Holiday Season

Meanwhile, the New York Times claimed that the total number of terminated employees is constantly changing. The holiday shopping season has its own importance for Amazon and the retailer often increases its employees to meet demand. It is noteworthy that Andy Jassy joined Amazon as CEO in July 2021. The company is still experiencing slowing sales amid a disappointing global economy.

A reliable source, theverge.com, also reported a similar story on Monday. The news outlet said Amazon has planned to eliminate at least 10,000 workers this week. This move is following a massive number of terminations at Meta and Twitter. Last week, both tech giants announced the termination of a large number of their employees. However, an expected downturn in the US economy motivated tech firms to slow or freeze hiring.