Amazon boss Andy Jassy sent a memo to all employees with the feared news that the company would be laying off employees. It has been reported that Amazon has already started laying off employees and Jassy confirmed that the layoffs will continue in early 2023. The Amazon CEO called it the “hardest” decision he’s had to make. Here are a few probable reasons what is happening to Indian employees and more:
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Why is Amazon cutting jobs?
Jassy said the company’s annual review has been difficult – leading to announcements of job cuts – and that the company has been quick to hire new staff in recent years. In the last two years, Amazon has doubled its workforce from 7.98,000 to 1.6 million. In addition, the economy continues to be in a challenging position, which is why Amazon has decided to lay off employees.
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Amazon has never “fired” so many employees in its history.
The last time Amazon laid people off in large numbers was in 2001, when the so-called dot-com bubble burst. At that time, 15% of the workforce – almost 1,300 employees – were asked to leave the company. The current number is estimated to be over 10,000 worldwide.
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Which teams are affected by the layoffs?
Affected teams include devices and books. Amazon also announced a voluntary rebate offer for some employees in its People, Experience, and Technology (PXT) organization. Jassy also said there will be more discounts in Amazon’s stores. It isn’t, as staff from Alexa teams, Luna (gaming department), advertising, and Fire TV department do as well.
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Further job cuts are possible at Amazon
The Amazon CEO said the company’s annual planning process extends into the new year, meaning there will be more role cuts as executives continue to make adjustments. “These decisions will be communicated to affected employees and organizations in early 2023.”
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What happens to employees in India?
A report by the Economic Times suggests Amazon could lay off hundreds of employees in India, although no exact figure for layoffs in India was given. The units expected to be laid off in India include the backend teams, retail and shared services.
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What do dismissed employees get
Jassy said in his memo that the company is trying to help employees find new roles on teams that may have vacancies. Those who are made redundant are offered a package that includes a severance allowance, transitional health insurance benefits and outside job placement assistance.
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Amazon’s future plans
The Amazon CEO says he remains optimistic about Amazon’s future. “Amazon has weathered uncertainties and tough economic times in the past, and we will continue to do so,” he said in the memo. He also said that Amazon has great opportunities ahead in all of its key businesses.
