In a circular issued by the CEO at Amazon, Andy Jassy says that due to uncertain and difficult economic conditions in the past, Amazon plans to lay off more than 18000 employees.
Source: economictimes.com
HIGHLIGHTS:
- Amazon will cut off more than 18000 jobs, CEO Andy Jassy said in a message to the staff that adduced an ‘uncertain economy’.
- Several teams would be impacted, majorly including the elimination of employees in the Amazon stores and People, Experience, and Technology organisations.
- Earlier the company had planned to cut off around 10000 employees but after looking into the economic conditions it has decided to eliminate over 18000 employees.
CEO Andy Jassy in his message to the employees on January 5, 2022, that “This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years”. With this in view, Amazon has taken a difficult decision to eliminate more than 18000 employees majorly in the amazon stores and PXT organisations, as a part of its Annual Plan for 2023.
The message also said that they are aware of the difficulties that the eliminated employees would face, and thus they are planning to provide special packages including a separation payment, transitional health insurance benefits, and external job placement support as compensation to the affected employees. The company is also planning to interact with the impacted employees on January 18.
CEO Andy Jassy also said that “Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year”.
Thus explaining that this action is being taken with a view to problem-solving and for the benefit of the customers of the company. This would lower the prices of the products and services and thus help the customers to engage themselves in savings.
Concluding his message, CEO Andy Jassy said that he is grateful to those who are impacted by this reduction for their contributions to the company and also added that he looks forward to making the life of the customers better and easier with the employees who continue their journey with amazon.
CONCLUSION:
Consequently, the lay-off would surely affect the lives of the impacted employees but it was crucial for the development and improving the economic condition of the Company.
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