Veteran tech and e-commerce company Amazon may soon lay off on a large scale. According to reports, Amazon is planning to lay off not 10,000 but 20,000 employees in the next few months. It is being told that the company will reduce the number of employees in many of its departments and will also remove many top managers.
According to reports, the retrenchment of employees will include employees of various departments including the company's technology, corporate, distribution center. The company can do this retrenchment till the end of this month or after the New Year. The reason for the retrenchment is being attributed to cost cutting due to the economic recession and over-hiring done in covid.
A few days back, Amazon CEO Andy Jassy also revealed that the company will continue to lay off employees till 2023. However, he did not then tell the number of employees the company would lay off. At the same time, earlier in mid-November, it was told in some reports that Amazon is planning to lay off 10,000 employees. However, the number of layoffs has now increased.
According to sources, Amazon employees are ranked from Level-1 to Level-7 and employees at all levels are likely to be affected. The company has asked the managers to assess the performance of the employees. After this the process of sorting will be started. As per reports, the 20,000 employees is equivalent to around 6% of the company's corporate staff and around 1.3% of the total 1.5 million workforce.
According to sources, corporate employees have been told that the employees will be given 24 hours' notice and severance pay as per the company's contracts. A source said that there is an atmosphere of fear among the employees of the company after the news of layoffs surfaced.
According to the figures of 31 December 2021, Amazon has more than 1.5 million full time and part time employees. Out of this, the layoff of 20,000 employees will be the biggest layoff in the history of Amazon.
