Amazon to lay off 6% of its workforce to keep up with escalating prices

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Tech behemoth, Amazon Inc. is reportedly planning to eliminate more than 18,000 jobs in order to reduce expenses.

The corporation employs about 300,000 people corporately, thus the job cuts represent about 6% of that workforce. As consumers slash their spending due to the rising cost of living dilemma, Amazon is the most recent major technology company to announce significant layoffs.

In a note to colleagues, Amazon's CEO Andy Jassy wrote that they were working to accommodate those who are affected and will be giving packages that include transitional health insurance benefits, and external job placement support as well as a separate payment.

It is worth noting that tech companies are being hard-impacted by a strong combination of a drop in consumer spending and a decline in advertising revenues as a result of companies cutting costs.

They have also passed the peak of their popularity during pandemic lockdowns when internet activity soared as people were restless at home.

Amazon has previously made the announcement that it will scale back on initiatives like the Echo and delivery robots, which were merely pleasant and did not generate any income.

According to anecdotal evidence, companies in Silicon Valley often acquire and retain exceptional employees at appealing pay even when they are not urgently needed in order to prevent them from joining competitors. However, now, this culture appears to be a luxury that big tech cannot continue to support.

The action follows the IT juggernaut's announcement last year that it will reduce its personnel without providing a specific number of job cuts. Where relevant in Europe, Mr. Jassy mentioned the company will speak with organizations that represent its workforce, although he did not say where the impacted employees were based.

Additionally, he stated that the People, Experience, and Technology team and the Amazon Stores operations would see the bulk of role eliminations.

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https://www.bbc.com/news/business-64171008