With plans to fire 18,000 workers, Amazon Inc. will start its largest-ever round of layoffs. According to a memo to employees obtained by Reuters, the world’s largest online retailer will eliminate certain positions by the end of Wednesday in the US, Canada, and Costa Rica.
Details about Amazon starts the most ever laying off 18000 workers
CEO Andy Jassy revealed the decision to lay off workers earlier this month. On an internal note, he said that because of the unstable economy and the company’s rapid hiring over the previous few years, annual planning had become increasingly challenging.
The CEO stated that the e-commerce and human resources divisions would be primarily impacted by the job layoffs, which would represent about 6% of the company’s approximately 300,000 corporate employees.
Tech juggernaut Microsoft announced earlier today that it would eliminate around 10,000 jobs this year. Microsoft CEO Satya Nadella stated in a letter to staff members that the choice was challenging but essential. “We are residing amid periods of profound transformation.”
Customers increased their digital expenditure during the epidemic, according to Nadella, but they are now optimizing their spending to get more done with less.
Recession is expected this year, according to global financial agencies like the World Bank and IMF, which has forced businesses to restructure and implement cost-cutting measures.
Growth in the US is anticipated to slow to 0.5% in 2023, which is 1.9 percentage points below earlier projections and the lowest performance since 1970 which is not an official recession.
According to the World Bank, any new unfavorable developments, such as higher-than-anticipated inflation, sharp increases in interest rates to contain it, a resurgence of the pandemic, or escalating geopolitical tensions, could cause the global economy to enter a recession in 2023 given the fragile state of the economy.