This news has been known to many for a long time that Amazon plans to lay off many of its employees, but this number has almost doubled. In November, representatives of the company started talking about it, arguing that after Covid-19, it is a necessity for them. During the pandemic, Amazon hired many new employees as stores were closed and online shopping moved to a new level. That is why Amazon needed employees for almost all positions. But now the situation has changed.
In February, Amazon announced that it had returned to double-digit sales growth, thanks to the “biggest Prime Day event in history” in July. Perhaps this news gave hope to many to keep their jobs. But Amazon promised investors to cut costs.
Yesterday, on the third of January, Amazon informed the Securities and Exchange Commission that it had taken an $8 billion loan that would be used for “general corporate purposes”. This was followed by information that it aims to use various financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs as it navigates an “uncertain macroeconomic environment.”
The Wall Street Journal published news that layoffs at Amazon will affect more than 17,000 employees. This is 7,000 employees more than planned. If Amazon cuts 17,000 employees, it will be one of the most significant reductions among technology giants, even though recently, many top companies have been doing it, including Twitter, Meta, Intel, and others.
