The effect of recession is being seen worldwide now. Big companies are laying off their employees one after the other. After big companies like Facebook, Twitter and Snapchat, now Amazon Lay Off has also decided to fire the people working here. According to the New York Times report, the company may lay off 10,000 employees as soon as this week. The company has cited failure to make a profit behind this move. If the total number of layoffs remains around 10,000, it will be the largest layoff in Amazon's history. This would represent less than 1 per cent of the company's workforce which employs more than 1.6 million globally.
After Twitter and Meta, now e-commerce company Amazon has laid off its employees in units which are new and have failed to make profit this year. According to the report, the layoffs will mainly be done in the devices unit of the company that makes products like Alexa, its retail unit and the human resource team. It has also been said in the report that the number of employees to be fired may increase or decrease. Till the time of writing the news, there was no response from Amazon on this report.
The report comes just weeks after the e-commerce giant warned of lower sales during the busy holiday season. The company's sales were highest during the busy holiday and festive season. Amazon issued a warning saying that this is because consumers and businesses have less money to spend due to rising prices.
Amazon recently announced a hiring freeze. The company had said in an internal memo that it would stop this hiring in view of the economic conditions. According to Beth Galetti, senior vice president of People Experience and Technology at the company, the hiring freeze will last for a few months. "We expect to maintain the hiring freeze for the next few months," Galetti said. However, despite the hiring freeze, the company will hire new employees for some projects.