Threat to jobs of thousands of employees in Amazon
Amazon LaysOff: Amazon, one of the world’s largest e-commerce companies, is starting to lay off about 30,000 of its corporate employees. According to a Reuters report, this step is being taken to cut the company’s costs and keeping in mind its future strategies. Amazon had recruited on a large scale during the Corona epidemic, but now after changing circumstances, the company is trying to “balance” its workforce.
There was ‘indiscriminate’ recruitment during the epidemic
The company officially says that in the last few years, especially during the Corona period, when online shopping was at its peak, more people were hired than required. During that time, recruitment took place on a large scale to meet the demand. Now that the market is getting back to normal and demand in many sectors is not what it used to be, the company is finding it difficult to manage its expenses. Therefore, this tough decision has been taken to balance the work by reducing the size of the staff. Let us tell you that earlier also at the end of 2022, Amazon had shown the way out to about 27,000 employees. But firing 30,000 employees at once would be the biggest layoff since that era.
1 out of every 10 jobs will be filled
The company has about 15.5 lakh employees worldwide, which includes a large number of warehouse and delivery network staff. In this respect, 30,000 people are only a small part of the total number. But, the real and deep impact of this layoff is going to be on the corporate structure of the company. amazon It has about 3.5 lakh corporate employees, that is, those people who sit in offices and handle tasks like management, technology, planning and strategy. This layoff means that the company is reducing approximately 10% of its corporate staff.
The blame will fall on these departments
According to Reuters report, this layoff will affect many important departments of the company. This includes the human resources (HR) department, which Amazon calls ‘People Experience and Technology’, devices and services (like the team that makes Alexa and other gadgets), and operations divisions.
Is technology taking jobs?
The company’s CEO, Andy Jassy, has already talked about reducing the growing bureaucracy (internal red tape) at the company, which also included reducing the number of managers. Their objective is to make the company more agile. More importantly, he had indicated in June this year that due to the increasing use of Artificial Intelligence (AI), more jobs may be lost in the future.
eMarketer analyst Skye Canaves sees these layoffs as directly linked to AI. He believes, this move by Amazon shows that the company is now seeing great progress in increasing productivity with the help of AI in its corporate teams.