As part of its strategy to cut its staff by about 18,000 people, Amazon has begun notifying employees who would be affected by its latest wave of layoffs.
The company announced on Wednesday that it would start a new round of layoffs, which is anticipated to be the biggest employment reduction in its 28-year history.
It Is Unclear What The Impact Of The Job Cuts Will Be
The decision, which follows a prior round of layoffs, is a part of a particularly sad day for tech workers as Microsoft also said on Wednesday that it is eliminating about 10,000 jobs.
It is unknown exactly how many employees would be affected in this round, but the company let go of 2,300 staff in Washington, The Verge writes.
However, considering that one of the company's offices is in Seattle, the bulk of employees were based there.
It can be remembered that it was In November that Amazon initiated its first round of layoffs, which is still happening until today.
There were rumors at the time that about 10,000 individuals, including employees from its hardware and services, human resources, and retail divisions, would be impacted.
Amazon also revealed the large magnitude of the layoffs in January, stating that they would affect 18,000 employees in total, including those from last year, the round on Wednesday, and possibly future reductions in 2023.
With that, a message from CEO Andy Jassy posted on the company's website said that impacted employees would be notified starting on January 18.
It is important to note that Amazon is reducing its workforce after hiring heavily during the Covid-19 pandemic, CNBC reports.
By the end of 2021, the company's global employment has increased from 798,000 in the fourth quarter of 2019 to over 1.6 million.
Read More: Amazon CEO Says Company's Layoffs Will Hit 18,000 Employees
The Layoffs Is A Part Of A Larger Cost-Cutting Effort
Based on memos sent to staff members by Doug Herrington, head of worldwide retail, and Beth Galetti, head of human resources, those working in the US, Canada, and Costa Rica should be aware by the end of Wednesday.
Meanwhile, it will take until after the Chinese New Year, perhaps in late January or early February, for workers in China to resume work.
In addition, US employees will receive a "60-day non-working transitional period with full pay and benefits, plus an extra few weeks of severance," according to Herrington's memo.
Moreover, in terms of sheer numbers, Amazon's job cuts are among the biggest in the sector, although it is far from the only employer doing so.
Furthermore, the corporation is dealing with a worsening economic outlook, higher costs, and sluggish sales growth.
In addition to the layoffs, Amazon has halted warehouse development, set a hiring block for its corporate personnel, and shut down a number of test projects.
This includes its healthcare service and a whimsical projector for kids that could make video calls, according to CNBC.
Amazon is not the only tech giant reducing its employees as Salesforce, Meta, and Twitter have all made significant headcount reductions in the midst of a worsening economic crisis.
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