Amazon to lay-off 10K employees. Are we on the verge of Recession?

Approximately 10,000 employees are planned to be laid off by Amazon starting this week itself. It will be the biggest bowl cut in the company’s history. 

This expected cut will focus on different departments of Amazon devices organizations including the voice assistant Alexa, Amazon retail division, and in human resources. According to an internal source of Amazon, said layoff will be in the team rather than all at once as each department has certain parts to wrap up. But, this 1ok figure represents roughly 3 percent of Amazon’s corporate employees and less than 1 percent of its global workforce of more than 1.5 million, which is primarily composed of hourly workers. Laying off employees during this time period shows how the global economy has put pressure on the companies to lay off because either they were overstaffed or they were underperforming for years. This year for “a particular labor market” Amazon “the e-commerce Giant” has more than doubled its cap on cash compensation.

These layoffs are a cause of changes in business models and risky economic conditions. Recently, Elon Musk laid off half of Twitter’s head, Meta, the parent company of Facebook and Instagram, laid off 13 percent which is around 11000 of its employees. Lyft, Stripe, Snap, and other tech firms have also laid off workers in recent months. Though, amazon was most profitable during the pandemic as consumers were mostly shopping online. Amazon doubled its workforce during the last two years. But, after the pandemic the consumer’s shopping habits changed, the decision made earlier proved to be of high cost to them.

Amazon in 2001, had cut 1500 jobs during the dot com crash. Even in early 2018 it also laid off a few hundred corporate employees. 

Amazon had frozen hiring in various smaller teams since September. Since October they have not filled more than 10,000 open roles in its core retail business. Two weeks ago, corporate hiring across the company was frozen including their cloud computing division.

That news came so suddenly that recruiters did not receive talking points for job candidates until almost a week later, according to a copy of the talking points seen by The New York Times.

Even we as a country are also at the risk of recession as most of the big giants have invested in Indian projects and now they are withdrawing the same. Though we lost many things during the pandemic, it also opened the opportunities for buying from your own convenient place, and the number of viewers for streaming content increased. This led many companies to grab this opportunity and invest in their staff and other resources. but, now there is a change in people investing their time and money. This change has led to many departments of the companies running idle and thus leading to the layoff. 

Therefore, we all should hope for the best and most probably it will be an economic slowdown.

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