Job Cuts: Amazon will continue to retrench next year, big statement of CEO of e-commerce company

Due to the sound of global recession, American companies have started laying off on a large scale. Meanwhile, Andy Jesse, CEO of e-commerce giant Amazon, has given a statement for the first time regarding the plan to lay off 10,000 employees. He also said that the company will continue with the cost-cutting measures in 2023 as well. 

Amazon is one of those tech companies that has grown tremendously in recent years, yet it continues to lay off. Apart from Amazon, these companies include Meta Platforms Inc. and Salesforce Inc. Are included. 

Amazon CEO Jesse said in a statement released on Thursday that the job cut has been decided to reduce the company's cost in view of the business situation. All the leaders of the company are considering their workforce and future investments with their teams. While simultaneously setting priorities around the needs of customers and the long-term health of our business. He said this year's review is more difficult, as the economy remains challenging. We have given jobs on a large scale in the last years. 

Amazon CEO Jesse said that the company's business and financial condition was informed in advance. Some professionals were offered to leave the company voluntarily. The company has given many employees 60 days to find new jobs, according to Bloomberg. Those who fail in this will be given a package and relieved. 

Earlier, Amazon's hardware chief Dave Limp wrote a letter to workers on Wednesday saying that after several rounds of reviews, we have recently decided to reorganize some teams and programs. This means that many people's jobs will no longer be needed. 

He said that I am very sad to give this news. The company has informed the affected employees about this. We will continue to work closely with each person to provide other support, including helping them find a new job. Biggest layoff in Amazon history

Earlier, news agency ANI quoted the New York Times (NYT) report as saying that the company may lay off 10,000 employees as soon as possible. If the total number of layoffs stays around 10,000, it will be the largest layoff in Amazon's history. However, this is less than 1 per cent of the company's workforce, as Amazon employs over 1.6 million people globally. The job cuts would be concentrated in Amazon's devices unit, which includes voice-assistant Alexa, and its retail and human resources divisions, the report said.

Amazon's growth slowed to the lowest rate in two decades after experiencing the most profitable time on record during the years of the COVID-19 pandemic, the report said. There was a spurt in online shopping by consumers during the pandemic. After Twitter, Meta and Microsoft, Amazon has become the latest tech company to drastically cut its workforce to deal with a possible economic downturn. Last week, Elon Musk cut his workforce by nearly 50 percent after completing the Twitter deal. Facebook's parent company Meta also laid off 11,000 workers to cut costs.

Activist investor TCI Fund Management has asked Google's parent company Alphabet to cut its workforce to cut costs. The investor, who has held a six billion stake in Alphabet since 2017, has told the company that the company has too many employees and the cost per employee is too high.