In his most recent quarterly earnings report, amazon revealed that between April and June 2022 it decided to lay off nearly 100,000 employees. This is equivalent to a 6% reduction in its workforce globally. Many describe this decision as historic, since it is the largest cut in personnel in the company of Jeff Bezos in a single quarter, and they speculate that it could be a preventive measure against the announced recession that would break out in the coming months.
According to the report, Amazon closed the second quarter of this year with 1,523,000 full-time and part-time workers, not counting contractors or temporary employees. This figure contrasts with the 1,622,000 it had at the end of March, but it is still 14% more than a year ago, explains the portal Barron’s.
From the end of 2019, until March 2022, the e-commerce giant nearly doubled its staff, adding about 800,000 jobs. He also notably increased the number of warehouses and distribution centers, to cope with growing demand from online shoppers during the pandemic. But consumption habits have changed and now they have too many employees.
Amazon’s CFO, Brian Olsavskysaid the company hired 14,000 workers during the first three months of 2022, in response to the spike in Covid-19 cases.
“We are quite transparent about the fact that we had hired a lot of people in the first quarter for coverage of the Omicron variant,” he reported. “Fortunately, that variance dropped and we were left in an overstaffed position,” he added during an earnings call with analysts.
They assure that there were no mass layoffs at Amazon
Olsavsky noted that the job decline is a result of “adjusting our hiring levels and normal attrition.” According to the director, the cut “was resolved more or less at the end of April or beginning of May.”
He also explained that the company is slowing down its expansion plans for this year and next, which includes fewer staff. “I don’t think we’re going to be hiring at the same rate as last year or the last few years,” he said.
Despite this, Amazon remains the second private company with the most workers in the world, according to Yahoo! Finance.
The decision of the technology company founded by Jeff Bezos occurs in the midst of strong financial uncertainty. personalities like Bill Gates, mark zuckerberg Y Robert Kiyosaki have made predictions about the next big crisiswhile Elon Musk ensures that the recession is “inevitable” and he sold 75% of his bitcoins to cushion losses in Tesla.
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Is Jeff Bezos getting ready for the recession? Amazon cuts 100,000 jobs globally – Entrepreneur