Jeff Bezos, who got out of Amazon’s leadership last year but is the largest shareholder, lost more than $85 billion last year due to the abrupt fall in the company’s shares on the stock market. That, along with other issues, could have triggered the decision to almost double the dismissals that the same company had notified in the past. Finally, the current number one Andy Jassy confirmed that Amazon will fire 18,000 employees, the largest pruning in the history of technology and the deepest in the wave of layoffs that the sector is experiencing throughout the country.
While the jobs they cut also included some in Europe, the company alleges it makes these decisions based on an “uncertain economy” and the fact that the retail giant had hired quickly during the pandemic.
With 132 billion dollars less, Musk leads the ranking of the techno-millionaires who lost the most in 2022
“Between the reductions we made in November and the ones we share today, we plan to eliminate just over 18,000 positions,” Jassy, CEO of the US giant, said in a statement to his employees.
The reduction plan is the largest among recent job cut announcements affecting the US technology sector. It’s also the most severe cut in the history of the Seattle-based company.
Jassy said company management was “deeply aware that these job cuts are hard on people, and we don’t make these decisions lightly.”
“We are working to support those affected and offer them packages that include severance pay, temporary health insurance and external help to find work,” he added. The confirmation comes after The Wall Street Journal leak a few days ago.
The company had already announced last November its plans to cut some 10,000 jobs, something that it has now exaggerated amid fears of a global recession that will severely impact the country.
It is believed that the wave of layoffs will awaken a union that has been strengthening not only in the country, but specifically in Amazon. Chris Smalls, the visible face of the movement, managed to form the first union last year in one of the company’s warehouses.
His milestone was such that he was received by Joe Biden, the most pro-union president in recent years in the country, at the White House.
With twists and turns, the organization at Amazon has been flowing despite complaints about anti-union policies. And a White House reaction to the layoffs at Amazon is expected given how Biden engaged with labor organizations.
But, the layoffs will follow their course. At the end of September, the group had 1.54 million employees worldwide, not including seasonal workers who work during peak periods, especially around the year-end holidays.
During the pandemic, the company made massive hires to meet demand, thus doubling its staff globally between 2020 and 2022. However, its net profit sank 9% year-on-year in the third quarter.
But tech stocks have fallen this year and the value of Amazon shares has fallen 50%. Bezos is now worth $107 billion, or $85.2 billion less. The company had been saying that high inflation and slow sales growth were putting pressure on it.
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Bezos lost 85,000 million dollars and applies the largest wave of layoffs in Amazon history