Connect with us

Hi, what are you looking for?

Editor’s Pick

Amazon cuts 18,000 jobs to lower costs

Amazon is cutting more than 18,000 employees in the biggest round of lay-offs by a technology giant yet.

The world’s largest retailer, which rode a surge in demand at the height of the pandemic, is now moving to cut costs amid cooling demand and fears of recession.

Having started reducing its vast workforce in November, amid reports it was targeting about 10,000 roles, the group confirmed last night that it had decided to eliminate more. It will begin informing affected staff later this month.

Andy Jassy, Amazon’s chief executive, said most of the lay-offs would affect its retail and human resources divisions. The company, which recruited rapidly after the onset of Covid-19 triggered an e-commerce boom almost three years ago, has more than 1.5 million workers, including about 300,000 corporate employees.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” said Jassy, who succeeded Jeff Bezos as its boss in 2020. “These changes will help us pursue our long-term opportunities with a stronger cost structure; however, I’m also optimistic that we’ll be inventive, resourceful, and scrappy in this time when we’re not hiring expansively and eliminating some roles.

“Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year.”

Based in Seattle, Washington, Amazon boasts a sprawling range of interests including retail, streaming, cloud computing and advertising. The business is based in Seattle, Washington, and was founded by Bezos in 1994.

Currently valued at $870 billion on the stock market, the company’s stock has halved over the past year as it counted the cost of rampant inflation and slowing demand.

Many prominent tech groups have cut employees in recent months, with tens of thousands of lay-offs announced last year. The software giant Salesforce said yesterday it would cut 10 per cent of its workforce and shut some offices.

While Amazon typically waits to confirm such moves until after they have been completed, Jassy, 54, said it was pre-announcing details of the upcoming lay-offs “because one of our teammates leaked this information externally”. Hours earlier, the Wall Street Journal reported that the company had increased the number of roles that it intended to eliminate.

More companies are expected to follow suit. “The Salesforce and Amazon layoffs add to the trend we expect to continue in 2023 as the tech sector adjusts to a softer demand environment,” Dan Ives, technology analyst at Wedbush Securities, said. “We expect more tech layoffs to persist as the tech sector was spending money like 1980’s Rock Stars to keep up with demand and now pivots.”

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

STOCKS continued to decline on Tuesday on faster-than-expected January inflation that fueled expectations of another big rate hike by the Bangko Sentral ng Pilipinas...

News

PHILIPPINE STAR/ WALTER BOLLOZOS THE PESO sank to the P55-per-dollar level on Tuesday as January headline inflation was faster than expected and amid hawkish...

News

President Ferdinand Marcos Jr. answers questions from the media after his first Cabinet meeting in Malacañan Palace, July 5, 2022. — PHILIPPINE STAR/ KRIZ...

News

REUTERS AGRICULTURE industry representatives said the government has not adequately supported farmers in achieving competitiveness against imports, which they called a necessary step before...

News

POLLOC FREEPORT AND ECOZONE — BARMM FACEBOOK PAGE THE classification of economic zone logistics services enterprises (ELSEs) as eligible for incentives under the Strategic...

News

BW FILE PHOTO A BILL that requires real estate investment trusts (REITs) to reinvest proceeds from their fundraising activities in the Philippines has been...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.