Amazon begins a fresh round of layoffs amidst the economic turmoil in the US

From decreasing benefits to sudden layoffs, working Americans had to endure it all, as businesses across the states struggled to find new, stable footing among the economic hardships of the year. Wherever you look, whichever industry you probe into, layoffs seem to be the common denominator today. Big tech players decided to join in on the layoff frenzy with large-scale job cuts, affecting thousands of Americans. Many economists warned of layoffs in the US not too long ago.

In our previous article, we discussed the biggest tech layoffs this year. This week, Amazon too began a company-wide job cut. Managers across departments were said to have informed their employees to find another role within the company in two months, or accept severance, according to sources. Many of the affected workers took to LinkedIn to express how they were impacted by the move.

Some reports claim that there is rising frustration among Amazon employees owing to the fact that their employer has not taken any initiative to issue any companywide notice informing workers of the size and scope of the layoffs. When fully completed, these layoffs will be the reason behind a rise in the unemployment levels in America.

Just weeks ago CEO Andy Jassy faced a bout of rumors about his ideas of accelerating belt-tightening within the company. Amazon was aiming particularly at its devices division. Reports claim that the company is planning to lay off 10,000 employees which amounts to roughly 3% of the corporate workforce. If followed through, this will be the largest workforce reduction that Amazon has ever done, in all of its 30-year history of being a tech giant.

The layoffs will affect other sections of Amazon including retail and human resources, and its cloud gaming service Luna. “We remain excited about the future of our larger businesses, as well as newer initiatives like Prime Video, Alexa, Grocery, Kuiper, Zoox, and Healthcare.” a spokesperson for Amazon claimed last week.

They continue, “Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review, which occurs in the fall each year.” According to the spokesperson, as part of 2022’s review, they are, “of course taking into account the current macro-environment and considering opportunities to optimize costs.”

The devices division of Amazon includes services and products such as Echo Products, Fire Tablets, and Alexa, and was considered a prime target for job cuts. The devices division was reportedly losing revenue of $5 billion a year.

It is normal to fear for the stability and safety of your own job after seeing news of layoffs everywhere you go online. A little bit of layoff anxiety will help you make wise career decisions in this unstable labor market. It might be a wise decision for you to start researching options in case of a sudden layoff. However, consider these factors before you quit your job in the middle of a potential recession.