Amazon Gives The Kill Order!

Massive Layoffs Announced At Amazon

Massive Layoffs Announced At Amazon

(AmericanProsperity.com) – Amazon has become an extremely successful online retailer and tech company. However, even the biggest and best companies experience slumps, and the Internet giant is no exception. As a result of the economy’s poor health, Amazon has decided to lay off thousands of people.

Following Suit

The New York Times reported the recent decision from Amazon to layoff around 10,000 employees comes as other tech companies have cut jobs. Like several other businesses, Amazon claims it mistakenly overbuilt their company due to the surge of success that came as a result of the pandemic. The online retail titan joined the likes of Meta Platforms, the parent company of Facebook, Lyft, and of course Twitter.

Growth Isn’t Always Good

Due to the record amount of money Amazon was making during the COVID-19 pandemic, the company decided to heavily invest, doubling its number of employees in just two short years. The rapid expansion seemed ideal at the time, but when Amazon experienced the worst slowdown in 20 years, it realized it had made a mistake.

Inflation negatively impacted the shopping tendencies of consumers, and that effect transferred to Amazon in the form of reduced sales. The company did make a comeback, but only slightly. Still, the company warned investors its growth could experience another lull, reducing to its lowest level since 2001.

As the business faced elevated costs due to their rapid expansion and decreased sales, it decided to do what it has done in the past: cut jobs. In 2001, during the dot-com crash, Amazon reduced its workforce by 15%, or around 1,500 employees at the time. The company experienced another slowdown after rapid expansion in 2018, resulting in a few hundred corporate workers being laid off.

Economic Impact

The massive layoffs will largely impact Amazon device organization, which is responsible for the company’s Alexa voice assistant, human resources, and retail division. The decision to cut 10,000 jobs is the largest in the company’s history. Amazon has revealed the number of layoffs isn’t set in stone. However, if the actual job reduction remains near the estimation, it will mean the retail titan is cutting around 3% of its current workforce.

With the holiday season — a very profitable time for Amazon and other retailers — just around the corner, the massive layoff seems counterintuitive. Even so, the retailer’s decision stands as a sign of the economy’s poor health, which has pressured the company to trim costs in the form of layoffs.

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