The company is expected to cut 10,000 jobs, or about 3% of its corporate workforce, an unprecedented move in its history.
The owner of Whole Foods has begun notifying affected employees. Based on referrals and social media posts, the staff cuts affect several divisions, including Alexa and cloud gaming unit Luna.
“I just learned that I am being affected by a recent layoff at Amazon,” said one post on the anonymous workplace app Blind on November 15. “My team was funded by Alexa. I also learned that at least half of the team is affected. I receive a benefit of 60 days and a week for every 6 months of tenure. They will keep me on LOA (leave of absence) for 60 days to find internal transfers.”
Founded in 2013, Blind offers private corporate channels for users to discuss workplace issues or gossip with colleagues.
“It started yesterday. More cuts today and tomorrow,” another user wrote.
“Unfortunately, I was affected by today’s layoff along with 10,000 other Amazonians. It’s super hard for all of us and I’m still trying to deal with it even though I’m limited by the #visa timeline,” Shivani Parate, who is a former software development engineer at Amazon, said on LinkedIn. “I am nothing but grateful for the time I spent at Amazon, learning and collaborating with some of the smartest people in the industry.”
“I’m looking for a Software/Machine Learning Engineer role immediately. Thank you in advance for any links, advice or opportunities you can offer! Message me for any leads or contact me at [email protected] Thank you again!”
She concluded: “PS: To all my amazing colleagues who are also affected, please reach out so we can stay in touch and help each other. I sincerely hope our paths will cross again!”
Amazon did not immediately respond to a request for comment.
Amazon has launched an austerity treatment aimed at drastically cutting costs, after years of massive hiring, especially during the pandemic. Then the group could not find workers for its warehouses.
“Take some risks off the table”
But the economy is not doing well.
“I don’t know if we’re technically in a recession, economists argue about that — they have some technical definitions,” Amazon founder and executive chairman Jeff Bezos said on November 14. “But I can tell you that the economy is not looking good right now. Things are slowing down. You’re seeing layoffs in many, many sectors of the economy, people are slowing down.”
“The probability is that we are not in a recession now, but we are likely to be in one very soon,” he added.
He advised small businesses and individuals to “take some risks off the table.”
The company’s chief financial officer, Brian Olsavsky, said in October that Amazon was seeing signs that consumers were being affected by the inflation which is the highest in 40 years.
“We are preparing for a period of slower growth,” Olsavsky told reporters after the release of third-quarter earnings.
As a result, Amazon issued disappointing holiday forecasts and warned on Nov. 2 that it would “pause new incremental hires across our corporate workforce.”
“We plan to maintain this pause for the next several months and will continue to monitor what we see in the economy and business to adjust as we believe makes sense,” Beth Galetti, senior vice president of human experience and technology, wrote in a statement to the employees.
Amazon isn’t the only one making massive layoffs to limit the damage from the current economic situation. Meta platforms (META) – Get a free report announced last week the closure of 11,000 jobs, or 13% of the group’s 87,000 employees. These were the first layoffs in Facebook’s history since its inception in 2004.
The decline spread across the tech and crypto sectors: Twitter (TWTR) – Get a free reportElevator (ELEVATOR) – Get a free reportCoinbase (COIN) – Get a free reportStripe, Microsoft (MSFT) – Get a free report all cut jobs recently.