The American group has announced the plan to remove positions that are most important to its history. Like other giants of the tech industry, Amazon is located in an area of economic turmoil.
Amazon is going to make the biggest job in its history. In a message posted Wednesday on the website of the group, the CEO of Amazon, Andy Jassy, indicates that Amazon ” would remove a bit more than 18,000 positions “.
The leader clarifies have decided to announce “the new fast” because an employee has made them ” leak “. Without specifying the distribution of these job cuts, he said employees impacted “, or their representatives, if any, in Europe ” will be contacted by the company on 18 January.
A bad phase For Amazon
The job cuts, which represent about 1 % of the total workforce of the giant of online commerce, will affect “several of our teams,” wrote Thursday Andy Jassy. ” However, the majority will be for the division, Amazon Store, and ‘People, Experience and Technology’ “, he adds. In France, the job cuts should not affect the subsidiary of logistics, says Laurent Degousée Union South.
In his note, Andy Jassy puts it, “economic uncertainty” and the ” rapid pace of recruitment in recent years.” “Amazon has resisted savings are uncertain and difficult in the past, and we will continue to do so “, says the boss of the American group.
“These changes will help us continue our long-term opportunities with a cost structure more solid […]. Companies that last for a long time go through different phases. They are not in the mode of the massive expansion of people every year, ” he continued.
Amazon saw its net income decline by 9 % year on year in the third quarter. And for the last quarter, Amazon had expected in November sluggish growth in terms of its standards, ranging between 2% and 8 % year on year, and an operating profit of between 0 and 4 billion dollars, compared to 3.5 for the same period in 2021. A few days ago, the American giant told Reuters to have a signed envelope of credit short of $ 8 billion to deal with the current economic uncertainties.
A reduction in the wage bill new
The distribution group had hired a tour of arms during the pandemic of Covid to respond to the explosion of the application, thus doubling its global staff from the beginning of 2020 and the beginning of 2022. At the end of September, the group had 1.54 million employees around the world, excluding seasonal workers recruited in a period of increased activity, particularly during the holiday season.
This plan of the removal job is the most important among the recent announcements of cuts to staff that affect the technology sector in the United States. It is also the reduction of staff, the most massive in the history of the Seattle-based company.
Job cuts across the tech
In the sector of tech, the large platforms in the economic model are based on advertising in the face of budget cuts to advertisers, who are reducing their spending in the face of inflation and rising interest rates.
Meta, the parent company of Facebook, announced in November the deletion of 11,000 jobs, or approximately 13 % of its workforce. At the end of August, Snapchat had removed about 20 % of its workforce or more than 1,200 people. Twitter, which was acquired in October by Elon Musk, for his part, laid off about half of its 7.500 employees.
Last, its group American Salesforce, which specialized in the management and in the cloud (remote computing), announced on Wednesday separate nearly 8,000 of its employees. About 10 % of its workforce.