Amazon Announces Job Cuts Amid Economic Uncertainty

Amazon Announces Job Cuts Amid Economic Uncertainty

Mihir Gadhvi 20/03/2023
Amazon Announces Job Cuts Amid Economic Uncertainty

Amazon, one of the largest online retail giants in the world, is set to cut 9,000 jobs in a bid to save costs.

The company, which currently employs 1.5 million people globally, revealed that the job cuts would predominantly affect roles in cloud computing and advertising. The positions are expected to be closed over the coming weeks, although the company has yet to disclose which countries will be affected.

This news comes on the back of a decision to cut 18,000 jobs back in January. The current move is part of a broader effort by Amazon to streamline costs and headcount, amidst growing economic uncertainty worldwide. The company's CEO, Andy Jassy, acknowledged that the decision to cut jobs was a "difficult" one, but ultimately the best for the company's long-term success.

Despite the pandemic-driven boom in online retail, Amazon's sales have slowed in recent months. Consumers are spending less due to the cost of living crisis, resulting in pressure on the company to cut costs in order to remain competitive. Other tech giants such as Google and Facebook's parent company, Meta, are also grappling with the challenge of balancing cost-cutting measures with the need to maintain a competitive edge. Meta recently announced plans to cut 10,000 jobs.

Jassy emphasized that in recent years, most areas of Amazon's business have been adding roles. However, given the uncertain economic climate, the company has chosen to be more streamlined in its costs and headcount. While it's never easy to lose employees, Jassy thanked those who have been impacted by the reductions for the work they have done on behalf of customers and the company.

One area that will see significant cuts is Twitch, a livestreaming platform that hosts content related to gaming and music. The move comes just days after Emmett Shear announced he would be stepping down as Twitch's CEO after 16 years in the role. Amazon purchased Twitch for $1 billion back in 2014.

The challenge of balancing cost-cutting measures with the need to maintain a competitive edge is one that many tech firms are currently facing. The pandemic-driven economic uncertainty, coupled with rising costs of production and delivery, has resulted in many companies rethinking their strategies. In some cases, this has led to a significant restructuring of the workforce.

One factor that has helped mitigate some of the impact of the job cuts is the shift towards hybrid and flexible working. With many companies now offering the option to work from home, job seekers are no longer limited to a 40-mile radius when looking for new opportunities. This has opened up new possibilities for those seeking work, allowing them to cast a wider net and potentially land a job that they may not have been able to access before.

In terms of finding a new job, experts advise that job seekers should not wait for a job to be advertised as not all jobs are made public. Instead, it's important to focus on explaining the right skills rather than the number of years in a role when applying. This can help showcase a candidate's strengths and increase their chances of landing a job in a highly competitive job market.

While the news of job cuts at Amazon and other tech firms is undoubtedly challenging for those impacted, it's important to acknowledge the broader context in which these decisions are being made. The pandemic has created significant economic uncertainty, and companies are facing pressure to find ways to remain competitive in a highly challenging landscape. As we navigate these uncertain times, it's crucial for companies to find the right balance between cost-cutting measures and the need to maintain a highly skilled workforce.

Share this article

Leave your comments

Post comment as a guest

terms and condition.
  • No comments found

Share this article

Mihir Gadhvi

Tech Expert

Mihir Gadhvi is the co-founder of illustrake and HAYD. Illustrake is a D2C Enabler and offers Performance Marketing, Retention Marketing, and Content Creation Services. HAYD is a brand New, homegrown fashion line that aims to make clothing easy for us without taxing our planet. Although the concept is quite known now, HAYD wants to accomplish sustainability by reducing its impact on the environment with safe and fair manufacturing.

Cookies user prefences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics