Amazon confirms the loss of 18,000 jobs
Employees busy in a distribution center of the Amazon company in the United Kingdom.
E-commerce giant Amazon announced on Wednesday evening that it would cut “just over 18,000” jobs, including including in Europe, another major sign of the difficulties of the technology sector in the United States.
In a message on the group's site, Amazon CEO Andy Jassy said the company – which had already announced some 10,000 job cuts in November – revised its estimate to the increase and plans to cut just over 18,000 jobs.
Without indicating the distribution of these job cuts, the manager, who specifies that he has decided to announce this news quickly because it was leaked by an employee, mentions that the impacted employees or their representatives, if applicable, in Europe will be contacted by the company on January 18.
“The review of our annual planning [….] has been more difficult this year given the #x27;economic uncertainty and the fact that we have been hiring massively over the past few years.
—Andy Jassy, CEO of Amazon
The distribution group has indeed hired with a vengeance during the pandemic to meet the explosion in demand, doubling its global staff between the beginning of 2020 and the beginning of 2022.
At the end of September, the group had 1.54 million employees worldwide, not including seasonal workers recruited during periods of increased activity, particularly during the holiday season.
Amazon has hired massively over the past three years.
Amazon has withstood uncertain and difficult economies in the past, and we will continue to do so, assures the boss of the American group.
“These changes will help us pursue our long-term opportunities with a stronger cost structure […]. Businesses that last for a long time go through different phases. They're not in massive staff expansion mode every year”
— Andy Jassy, Chief Executive Officer of Amazon
This staff cuts plan x27;jobs is the largest among recent workforce reduction announcements affecting the technology sector in the United States.
It's also the most massive staff reduction in Seattle company history. Amazon saw its net profit drop 9% year on year in the third quarter. And for the last quarter, Amazon anticipated in November anemic growth by its standards, between 2% and 8% over one year, and an operating profit of between 0 and 4 billion dollars, against 3.5 for the same. period of 2021.
The group is due to announce its annual results on February 1.
Andy Jassy remains confident that Amazon will weather the recent upheaval.
In the tech sector, the major platforms with an advertising-based business model are facing budget cuts from advertisers, who are reducing their expenses in the face of inflation and rising interest rates.
Meta, the parent company of Facebook, announced in November the loss of 11,000 jobs, or about 13% of its workforce. At the end of August, Snapchat cut about 20% of its workforce, or more than 1,200 employees. Twitter, bought in October by Elon Musk, for its part laid off around half of its 7,500 employees.
Last to date, the American IT group Salesforce, specializing in management solutions and in cloud information, announced Wednesday to separate approximately 10% of its employees, or just under 8,000 positions.