The company joins the wave of departures within the technology sector due to the urgency to cut costs in the sector
Amazon joins the wave of layoffs in the technology sector that has claimed thousands of victims in recent days on major platforms such as Twitter or Meta (Facebook). The company, which had decided months ago to freeze hiring, plans to cut some 10,000 jobs that, according to “The New York Times,” will be mostly concentrated in the device unit it belongs to, including its Alexa voice assistant.
The sources consulted by the newspaper make it clear that the number of layoffs is not yet final, but that it would be around 3% of Amazon’s staff. However, the total workforce is about 1.52 million employees, if employees are included by the hour (not counting temps and freelancers). In other words, the 10,000 layoffs would represent barely 1% of the total workforce, which would be at least the largest workforce reduction in the company’s history.
While the company has not confirmed the final number of employees that will be affected, the truth is that the reasons for its decision are the same as other tech giants forced to pull out the scissors to adjust staff costs due to the deterioration macro and cost pressures and especially the inability of these companies to meet the high earnings expectations generated by the change in consumer habits during the pandemic.
In fact, Amazon generated some 500,000 new jobs in 2020 to cope with the increase in online commerce, adding another 300,000 the following year.
Something similar happened with Facebook. Its founder, Mark Zuckerberg, announced last Wednesday that there will be 11,000 layoffs out of a total workforce of approximately 87,000 employees worldwide. A figure that has doubled in just two years compared to the 44,000 it recorded in 2020.
Another of the most notorious moves in recent days is that of Twitter, with the controversial layoff of 3,700 employees, 50% of the global workforce, after Elon Musk, the social network’s new owner, announced that the social network is losing daily 4 million dollars. With the cuts, he hopes to save $ 1,000 million annually in personnel costs.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
