As the global economic outlook continues to worsen, e-commerce giant Amazon has notified thousands of its employees of layoff plans as the company embarks on a second-wave layoff.
Reports disclose that more than 3000 workers at Amazon have been notified of potential job loss, as the company filed notices of job cuts within three states in the U.S. last week.
The layoffs at Amazon are no doubt happening at a massive rate after the company disclosed that it added workers too quickly, especially in warehouses as consumers have shifted to online ordering.
Recall that last year November, the company revealed plans to lay off 10,000 of its employees in corporate and technology roles after it reported disappointing third-quarter earnings in October that spooked investors and caused its shares to sink more than 13%.
In its third quarter (Q3) 202 earnings report, its operating income decreased to $2.5 billion compared to $4.9 billion in the same quarter last year, while the net income declined to $2.9 billion compared to $3.2 billion in Q3 2021.
Amazon’s third-quarter report marked the first time the company’s market cap fell below $1 trillion since April 2020, while its Stock was down to about 41%, Investors King understands.
As the company continued to seek ways to navigate the economic downturn, it began a fresh round of job cuts this year, laying off about 18,000 workers, in what was described as the largest workforce cuts in its 28-year history.
The company disclosed that such a move was necessitated as it was confronting slowing sales growth, rising expenses, and a worsening economic outlook.
Meanwhile, the company’s CEO Andy Jassy disclosed that affected employees will be provided with severance packages including Separation payments, transitional health insurance benefits, and external job placement support.
Lately, the tech industry is witnessing a massive bloodbath, as Amazon isn’t the only tech company making cuts to its workforce. Other tech companies such as Spotify, Microsoft, Meta, Twitter, etc have all laid off a significant part of their workforce.
