Amazon layoff to affect 10,000 employees The New York Times reports. This company joins the other tech companies cutting their workforce in 2022. I wrote about the Lyft and Stripe layoffs, as well as Twitter and Meta job cuts.
Amazon Layoff Details
The job cuts will affect the company’s devices division, retail division, and human resources. And this cut will be the largest in the company’s history. However, these 10,000 employees are just 1% of Amazon’s global staff, and 3% of the corporate employees. I must add from The New York Times report the number of layoffs could change because the company says everything “remains fluid.”
Why Is The Company Cutting Jobs Now?
Many wonder why the company is cutting jobs now right before thee busy shopping season. Black Friday is about a week away from the posting of this article. And this is the time many retailers (online and brick-and-mortar) hire additional employees to help with the increased demand. Yet, Amazon isn’t. Why? Because its new CEO, Andy Jassy, is in cost-cutting mode. He wants to save cash because he believes there is a recession coming. Will that recession be only in America or global remains to be seen. Yet, Mr. Jassy joins the other Technology CEOs who think a recession is coming and wants to cut costs.
In addition to the layoffs, Amazon froze hiring just like the other Technology companies. The company will hire for critical roles, however.
What Can Business Owners Learn From This?
So what can business owners learn from the Amazon layoff? Reviewing the company’s latest initiatives I don’t see any major mistakes within them. Some worked while others didn’t. And those that didn’t work Amazon did shut them down so not to continue to waste money on them. So business owners need to be like Amazon and review what sectors in their business work and don’t work periodically. That way they can find out what needs to be modified or cut.
Another lesson business owners can learn from this is certain industries go through worse times when bad economic times hit. Retail is one of those industries, specifically ones not selling groceries and/or household goods. Because people don’t need electronics or furniture for the most part when a recession comes. So if you’re in retail you should investigate how to offer other inventory in your store customers need so you can continue to make sales.