Amazon begins mass layoff as it eyes 10,000 job cuts: Report

Edited By: Mukul Sharma
San Francisco, USA Updated: Nov 17, 2022, 11:20 AM(IST)

This is reportedly the first mass layoff in the company's history that will take away over 10,000 jobs.  Photograph:( Reuters )

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The company had already reduced the head count by 80,000 between April to September this year, having frozen the hiring at corporate and hourly levels respectively.

 

Amazon has confirmed that it would be laying off people in a bid to "consolidate some teams and programmes." The announcement was made via a memo to the staff written by Dave Limp, senior vice president of devices and services at the e-commerce firm, reports Fox News.

Though it is unconfirmed how many employees would exit the firm, the Wall Street Journal quoting a source said that the layoffs could amount to 10,000 jobs total – including in Amazon’s retail, devices and human resources divisions.

"After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required," Limp wrote in the memo on Wednesday.

"It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result." 

He said that the employees were notified a day before and assured that the company would assist the sacked employees to find new roles.

"We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles," Limp said.

"In cases where employees cannot find a new role within the company, we will support the transition with a package that includes a separation payment, transitional benefits, and external job placement support."

Amazon joined the layoff spree of its Silicon Valley counterparts on Wednesday, as the Jeff Bezos-led company began implementing its anticipated job cuts across its tech and corporate workforce. This is reportedly the first mass layoff in company's history. 

The layoff, expected to hit 3 per cent of its staff, will also include jobs in retail and Alexa units due to slow growth.

The company had reportedly reduced the head count by 80,000 between April to September this year, and froze hiring at both the corporate and hourly level.

The workers impacted by the layoffs shared their ordeals on social media.

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As part of its cost-cutting measures, Amazon had already shut some parts of its business, cancelling projects such as a personal delivery robot.

Amazon shares have fallen by over 40 per cent this year as it struggles with a slowdown in sales via its ecommerce platforms. 

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Other companies that have announced major layoffs include Mark Zuckerberg-owned Meta and Elon Musk-owned Twitter. While Twitter said that it will reduce the platform's headcount by around 50 per cent, Meta said that it would cut 13 per cent of its workforce. 

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