Amazon plans to sack 20,000 employees: Report
Amazon has told its managers in the past few days that they should spot performance-related issues among the employees.
Market NewsEdited by Rahul Karunakar
Updated: December 07, 2022 8:01 am IST
In the coming months, Amazon may lay off around 20,000 employees, including corporate executives, reported ComputerWorld.
The tech giant, which employs more than 1.6 million globally, will likely show the door to staff from various departments. These include distribution workers, corporate executives, and technology staff.
The report added that the layoff would impact employees at all levels in the company, quoting anonymous sources familiar with the matter.
Last month, the New York Times reported that Amazon was planning to fire as many as 10,000 employees, which would have been the biggest layoff in the technology company’s history. However, now the report states that the number of laid-off employees could be doubled.
Amazon has told its managers in the past few days that they should spot performance-related issues among the employees.
According to sources, corporate employees who will be sacked will receive a 24-hour notice and severance pay per the company’s contracts.
One source, who was directly informed about the imminent layoff, said that fear had gripped employees since they learned about the job cuts.
The source added that Amazon is targeting a specific department or location for the layoff and that the move might affect employees across the business.
The sacking will be carried out as Amazon over-hired during the pandemic and is now implementing cost-cutting measures.
In October, Amazon forecasted a slowed-down sales growth for this year’s holiday season, which usually records the highest sales.
The company had attributed this slowdown to consumers and businesses having less money to spend amid rising prices.
Following this, it was reported that the e-commerce giant cautioned its employees in some unprofitable units to begin looking for opportunities within the company.
Amazon has been grappling with a drastic slowdown in e-commerce growth after shoppers returned to pre-pandemic habits. It deferred warehouse openings and froze hiring in the retail group.
Source: NDTV-Business