Amazon Inc cut 99000 jobs in the last 3 months
A few days ago, Seattle-based Amazon Inc. released its earnings report for the second quarter. Along with the business’s financial information, the report included information on how many employees left the e-commerce firm in the most recent quarter. Amazon Inc.’s total employee count decreased from 1622000 in March 2022 to 1523000 in June 2022. This means that nearly 99, 000 people who worked full- or part-time for the organization lost their jobs in the last three months. The company has never in its history experienced a personnel decline of this magnitude from quarter to quarter.
The chief financial officer of Amazon Inc., Brian Olsavsky, claimed that the high turnover rate at the company’s fulfillment and distribution centers was the primary cause of the dramatic fall. A short time after the business filed its profit reports for the quarter that ended in June 2022, Brian was speaking to press reporters. In the future, while planning to hire new workers and staff for the company’s headquarters and new offices that are opening up in other US states, he continued, Amazon would exercise extreme caution.
In response to a question regarding similar moves taken by other tech businesses, Brian emphasized the need for large corporations to take a step back and reconsider their employment strategies. Brian believed that in order to meet demand, Amazon would not be adding new staff at the same rate as it did during the pandemic. Earlier investigations noted that Amazon Inc.’s distribution hubs and warehouses had an excessive number of employees. Amazon nearly doubled its staff during the epidemic and subsequent lockdown limitations by adding more than 800,000 new employees to its payroll. This move was made to meet the rising demand for internet purchasing.
Even if Amazon Inc. would keep pursuing hiring goals for engineers and specialized positions in services like AWS, hiring for warehouses and delivery systems would significantly slow down. Andy Jassy, the chief executive officer of Amazon Inc., notified investors about the company’s plans to implement stringent cost-cutting measures in May. These included eliminating positions and cutting back on additional costs. It was decided that cost-cutting measures were required to return the consumer company to profitability.
Amazon’s employee count increased by about 14% when compared to the second quarter of the previous fiscal year, despite the fact that headcount actually decreased quarter over quarter.