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News on HR 5th Dec 2022 ardorcomm Amazon now plans to layoff 20,000 employees: Report

Amazon now plans to layoff 20,000 employees: Report

Amazon, the technology and ecommerce giant, was reported to be planning to lay off up to 10,000 employees in the coming months in mid-November. However, according to Computerworld, the company is considering laying off 20,000 people across all businesses and divisions.

Employees at distribution centres, corporate roles, and technological functions will be affected by this layoff. According to reports, this will be Amazon’s largest layoff in its history. Andy Jassy, CEO of Amazon, announced in a statement to the media that the company is considering layoffs but did not provide specific numbers. People working in people experience business physical stores would be impacted, according to him. This layoff is expected to affect all firms, with no specific location indicated.

Employees in higher salary bands will also be laid off. Amazon has seven bands, and all are expected to be impacted. It is also said that employees who are laid off will receive a mail confirmation and severance pay 24 hours before their termination. According to the report, one of the reasons for this layoff is that the company, which was employing in large numbers during the pandemic, overhired.

Amazon is now sacking employees as a cost-cutting measure in the guise of streamlining the business. Managers in the Company have been requested to investigate performance issues in their teams as a result of the layoffs. Amazon teams are considering relocating the laid-off employees to different roles within the Amazon group of businesses or offering them separation packages.

The severance package will include a separation payment, transitional health insurance benefits, and outside job placement assistance. Amazon’s ecommerce business has been decreasing. In reality, Amazon Web Services’ year-on-year income has also decreased this year. The quarter ending September had revenue increase of 27%, which was lower than the preceding two quarters, which saw revenue growth of 33% and 36.5 percent, respectively.

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