Amazon to layoff 18,000 Employees amid Recession fear, CEO Andy Jassy confirms

Leading e-commerce giant Amazon is planning to eliminate around 18,000 of its employees. In the past several years, Amazon has hired a significant number of employees, however, now they are being cut in anticipation of a recession. A lot of teams will be affected by this cut. As per reports, the majority of employees will be taken off from Amazon Store, People, Experience, and Technology teams.

Another Big Layoff from Amazon

Earlier, In November of this year, Amazon announced the layoff of 10,000 staff. Amazon had more than 15 lakh employees at September’s end making it one of the biggest US employers. Following the announcement of the e-commerce business, its stock saw an increase of 2%. Many investors believe this move could boost profits for Amazon.

Company CEO Andy Jassy announced that ‘we are offering a separation payment and health insurance benefits for transitional workers as well as external support for job placement for those who are affected by the cut.’ He added “I am extremely thankful for the efforts of those who are affected by the cuts. As for those who carry on the journey together, I am looking forward to working with them to make life more enjoyable and more convenient for customers each and every day.’

Halt Hiring Process

The company has already announced a halt to the hiring process. The company stated in a memo, “We have a challenging macroeconomic situation. In this economic environment, we try to manage the amount of investment and hiring. This isn’t the first time that we’ve faced economic challenges numerous times in the past.”

Encouraging the Robotics work

The company is encouraging the robotics used in many devices to complete jobs. Around three-quarters of packets delivered today are processed by a robot system. Ty Brady, chief of Amazon Robotics, had said that packaging could be completely via robots within the next five years. He also said that in the future robots could replace human workers but it could take quite a while.