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In the face of the economic crisis, Amazon has also declined

In the face of the economic crisis, Amazon has also declined

On Thursday, Amazon confirmed that it had started laying off employees to deal with the economic crisis, after several days of rumors about a redundancy plan at the e-commerce giant.

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“The economy remains in a complex situation and we’ve been hiring quickly in recent years,” Andy Jassy, ​​president of the US group, said in an internal note posted on Amazon.

According to several US newspapers, the platform and its various subsidiaries will lay off about 10,000 employees.

Andy Jassy wouldn’t confirm that number, but said the process began on Wednesday and will continue early next year.

The first teams involved were those dealing with the brand’s electronic devices (such as Kindle readers). Physical stores will also be affected.

There will be more layoffs as executives make adjustments. These decisions will be communicated to the relevant employees and organizations at the beginning of 2023, detailed by the Director General.

“I have been in my position for about a year and a half, and this is undoubtedly the most difficult decision we have made during this period,” he said, stressing that he was aware that he did not act not only as “situations”, but as “people who have passions, aspirations and responsibilities whose lives will be affected.”

The reduction of 10,000 employees would represent just under 1% of the current payroll for the group, which had 1.54 million employees worldwide at the end of September, excluding seasonal workers, hired during periods of increased activity, particularly around the holiday season.

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The company announced two weeks ago a hiring freeze in its offices. Its workforce has already shrunk since the start of the year, when it employed 1.62 million people full or part time.

Amazon has been retaliatory hiring during the pandemic, to meet the explosion in demand, doubling its global headcount between early 2020 and early 2022.

But the US retail giant saw its net profit drop 9% year over year in the third quarter. And for the current quarter, the crucial period of year-end festivities, the group expects anemic growth in relation to its criteria, between 2% and 8% over one year.

Several tech companies that have been recruiting heavily during the pandemic have recently announced social plans, including Meta (Facebook and Instagram), Twitter, Stripe and Lyft.