Amazon’s layoff consideration toward 18,000 represents around 1.2% of the full-time and part-time of Amazon as of last September 2022.
Heaptalk, Jakarta — A technology company Amazon announced to cut off over 18,000 workforces, effective on January 18th, 2023. The total of laid-off employees is higher than the previous amount of around 10,000 employees, as reported last November 2022.
As informed by the Variety report, this giant technology company would conduct a layoff plan of Amazon for several departments, with most of the impacted teams from the Amazon Stores business unit, including the People, Experience, and Technology division.
“Amazon has encountered an uncertain economy. This resolution is quite complicated. We realize this layoff decision has delivered numerous terrible impacts on our people. We do not take this decision lightly or underestimate how much it impacts the lives of those affected.” affirmed the CEO of Amazon, Andy Jassy, as cited in CNN (01/05).
As the company noted, the workforce termination of 18,000 people represents around 1.2% of the full-time and part-time of Amazon as of last September 2022, bringing this giant technology company to reach the second most outstanding private company in the United States, following Walmart Inc.
However, in recent months, Amazon has embarked to brace for slower business enhancement as inflation forces businesses and consumers to allocate expenses more efficiently. For this reason, the management determined to perform rightsizing steps for its teams and programs, consisting of a hardware and service division.
To appreciate the affected teams of Amazon’s layoff determination, this multinational technology company would continue to support the laid-off employees by providing severance pay, including health insurance benefits and external job placement support.
Business evolution of Amazon company
During Amazon’s business journey, this multinational company developed several business units to increase profitability. However, according to the eMarketer record, around 90% of this technology company’s profits were dominated by the retail sales business unit.
On the other hand, the company that focused on e-commerce, cloud computing, online advertising, digital streaming, and the artificial intelligence sector also expanded its business to the conventional retail and health field by acquiring Whole Foods and Pillpack.
Although the COVID-19 pandemic has hit worldwide, Amazon has continued to elevate business performance by increasing its sales by 40% year-on-year (YoY), attaining US$88.9 billion in the second quarter of 2020. This achievement doubled Amazon’s profit, reaching US$5.2 billion during the pandemic.
However, as recorded by katadata report, Amazon closed its net sales worth US$127 billion in the third quarter of 2022. This output has only climbed to around 4.84%. In more detail, the net sales of Amazon’s service are the most significant contributor, achieving US$67.76 billion, or approximately 53.31% of the net sales in total. Meanwhile, the report revealed that the net sales of Amazon’s products were around US$59.34 billion.
