The giant Amazon's turn to start a wave of layoffs

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The giant Amazon’s turn to start a wave of layoffs

The layoffs affect scientists, developers and engineers.

Amazon has initiated layoffs. It thus becomes the latest technology company to reduce its staff amid fears linked to the upheavals of the economy.

On Tuesday, the company informed regional authorities of California that it would lay off approximately 260 workers at various facilities that employ data scientists, software engineers and other workers. These job cuts will be effective as of January 17.

Amazon did not specify how many more layoffs are being considered, other than those confirmed by California's Worker Adjustment and Retraining Notification Act, also known as WARN, which requires companies to provide 60 days notice if they have 75 or more employees.

Amazon employs over 1.5 million workers worldwide, mostly paid by the hour.

The online retail giant, like other big names in tech and social media, made huge profits during the COVID-19 pandemic as consumers bought more items online. line.

Revenue growth was, however, slowed by the easing of the pandemic and the return to old habits of consumers who relied less on e-commerce.

The Seattle-based company has posted two consecutive losses this year, mainly due to write-downs in the value of its stock investment in Rivian Automotive. The company returned to profitability in the third quarter, but investors were pessimistic about its weaker-than-expected revenue and lackluster outlook for the current quarter, which is generally good for retailers due to the holiday season.

In a bid to cut costs, Amazon has already halted some of its projects, including the subsidiary, Amazon Care and the Scout home delivery robot. The American giant has also delayed or canceled its plans to occupy new warehouses throughout the United States.

Amazon's Chief Financial Officer Brian Olsavsky said the company is preparing for a period of slower growth and will be careful about the ;hiring in the near future.

Massive layoffs are rare at Amazon, but the company saw rounds of job cuts in 2018 and 2001 during the e-commerce crash. On the warehouse side, the e-commerce giant usually reduces its workforce through attrition.

In a statement posted on the company's website, Dave Limp, senior vice president of devices and services, said Amazon is in the process of consolidate certain teams and certain programs.

He says those laid off in the process were notified on Tuesday and the company will work with them to provide support.

The retail giant is following other tech giants that have cut jobs in recent weeks. Among them, Facebook parent Meta said last week it would lay off 11,000 people, or about 13% of its workforce. Elon Musk, the new CEO of Twitter, cut his workforce in half this month.

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