Amazon is laying off around 10% of its employees. This means that at least 30,000 workers will lose their jobs. According to a report by the news agency Twitters, Amazon currently employs roughly 1.55 million people, and the layoffs will affect around 3,50,000 employees. Some reports said this will be the biggest layoff in the company’s history.
Sources suggest that during the COVID-19 pandemic, Amazon hired a large number of people, but now the company is struggling to pay their salaries. That’s why around 30,000 employees are being terminated. Another major reason behind the layoffs is said to be Artificial Intelligence (AI). Earlier in 2022, Amazon had already eliminated nearly 27,000 positions.
According to a report, these layoffs didn’t start suddenly. For the past two years, Amazon has been making cuts in smaller departments like Devices, Communications, and Podcasting. But this week, the company is planning its largest-ever layoff, which may also affect its overall services.
The report mentions that on October 27, a meeting of managers was called. Managers whose teams were affected by the layoffs attended this meeting. They were trained on how to handle and communicate with the employees who are being laid off. It was also mentioned that employees working from home or not attending office regularly were asked to resign voluntarily.
As per Reports, citing three senior company officials, Amazon hired extensively during the COVID pandemic, but now it can no longer afford the costs, which is why the layoffs are being carried out.
Earlier this year, Amazon CEO Andy Jassy announced that managerial positions would also be reduced. He said the company had created an anonymous complaint line so that employees could share concerns confidentially.About 1,500 complaints were received, and nearly 450 changes were made as a result.In June, the CEO also stated that the use of AI is rapidly increasing, which poses a risk to jobs especially for employees whose work involves routine tasks.
According to Reports, the layoffs will mostly affect employees working in the US, UK, and Canada. These employees will be given a 90-day severance pay package.
To remind you, earlier this month, it was reported that Tata Consultancy Services (TCS) had laid off 19,755 employees and that number may rise further. The company spent nearly ₹1,135 crore on this layoff process. TCS cited restructuring and AI as the main reasons. “Restructuring” means certain necessary organizational changes.
Regarding AI, TCS CEO and MD K. Krithivasan had said, “I thank all our employees for their dedication and excellence. We are on the path to becoming the world’s largest AI-led technology services company.”
Another report mentions layoffs at Paramount Skydance, an entertainment company. The company is planning a major layoff, starting with about 1,000 employees.
[…] Also Read : Amazon Announces Massive Layoffs 30,000 Employees to Lose Jobs Worldwide […]