Amazon has been in the news lately due to the mass layoff held in the company. Amazon CEO, Andy Jassy, shakes the ground beneath the foot of amazon’s employees with a blog post on Jan 4 (2023), where he mentioned that the company will lay off about 18,000 employees as the company is going through difficult economic crisis and they are seeking to save the cost dimensions of the company. The company will start cost cutting from Jan,18 (2023).
In the post, Andy says, “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so. These changes will help us pursue our long-term opportunities with a stronger cost structure.”
Andy has already come with a warning in November, where he says, layoffs are on the horizon followed by an uncertain economy and dysfunctionality after the pandemic. he adds that there might be voluntary elimination for some employees in its PXT organizations.
Amazon is laying off employees globally in which Amazon India has also suffered a huge hurricane. Many IITians and others who were recently hired were thrown out in between their serving periods. Employees have shared their remorse on LinkedIn and are desperately searching for another job opportunity over LinkedIn.
Here are some reactions of affected employees of Amazon post layoff: –
Why massive layoff
“Why there is such a sudden massive layoff?” is a top-barked question right now in everybody’s mind. A panel of experts states that the COVID-19 pandemic is the major reason behind such a massive layoff not only from Amazon but other various companies as well. During the pandemic in 2020, online working mood restricted the hiring strength in various companies which resulted in a clustered system of functionality, post-pandemic. To maintain normalcy in a working system, companies are laying off employees in massive amounts.
Daniel Keum, an assistant professor of management at the Columbia Business School, said “In the past few years companies may have resisted laying people off because of the negative attention or cruelness of doing so in the depths of a pandemic. Moreover, firms found it difficult to judge worker performance and hence, may have held off on reducing headcount. Now, as more companies head back to the office, at least on a part-time basis, leadership is considering the cuts it might previously have resisted.”
Not only COVID-19, but the Russia-Ukraine war also contributed a major part in welcoming Recession. This war brought a major economic crisis globally by increasing inflation and manpower decline. This chain economic disturbance adversely affected companies and they started feeling the need of restructure and cost-cutting to face the recession.
Amazon support to their employees
Unlike Twitter, Amazon didn’t leave its employees clueless. They showed all possible support to their employees. An official email was sent to all the affected employees to meet their leader and manager to receive all the answers related to their queries.
Above all, Amazon assured their affected employees to provide 5 months’ severance payment which will be very helpful for the employees till the time they are searching for their next job.
Which other companies are doing mass Layoff?
Amazon is not the only e-commerce giant who are doing mass layoffs, many other big companies doing the same following the recession. The list is huge and shocking, here we have jot down all the companies that have started mass layoffs: –
- Mcdonalds
- Microsoft
- BYJU’s
- Goldman Sachs
- Netflix
- Meta
- Apple
- Cars24
- OYO
- Unacademy
- Swiggy
- GoMechanic
And this list doesn’t end here. It is said that many more companies are going to join the layoff agenda in 2023.
No more Layoffs?
Did you think this was the worst phase in the corporate industry and layoffs are over here? So, you were very wrong. 2023 is going to be the year of massive layoffs and recessions.
Due to economic woes followed by recession and inflation, many companies whether huge or micro, all are following the massive layoff method. Tech giants like Amazon, Microsoft, and Twitter are laying off huge amounts of employees which is affecting employees on a major level.
The layoff started in November 2022 itself, when many new startups were affected by this, and it is said that 2023 will be the year of recession and layoffs. Many IITians and NITians are laid off in the mid of their service period and are now left clueless on the road to joblessness. Many have stated that they never expected 2023 will start in such a terrible way.
Many more companies are going to join the game of massive layoffs and even the previous companies are going to do more layoffs by the mid of this year.
At last, on a positive note and all the good wishes to the affected employees, Agency Masala would like to say,
“Hoping for the best, Prepared for the worst, and unsurprised by anything in between.“
