This week, Amazon.com said it would be cutting another 9,000 jobs. This would bring the total number of jobs lost in the past few months to 27,000, or 9% of the company’s total workforce. Amazon is taking this step because it wants to streamline its business and deal with the uncertain economy, which has made business customers think carefully about how much they spend. The company’s highly lucrative cloud and advertising divisions, as well as its streaming division, Twitch, will be the focus of the most recent round of job cuts. By April, Amazon hopes to have decided who it will let go. The choice comes after a wave of layoffs in the technology industry, which saw some of the most valuable companies in the world, such as Microsoft and Alphabet, sever ties with a staggering number of staff members.
Also Read: Coles Offers Discounted Apple eGift Cards For Tech Savvy Shoppers
Meta Platforms, the company that owns Facebook, said last week that it would cut 10,000 jobs this year and more than 11,000 jobs in 2022. Tom Forte, an analyst at DA Davidson, said that the job cuts didn’t come as a surprise given Amazon’s plans and worries about the economy. Amazon’s CEO, Andy Jassy, explained the choice in a memo to staff that was published online. He said it resulted from ongoing priority analysis and economic uncertainty. Despite having a reputation for creating jobs, Amazon has recently reduced or stopped offering some services, such as its virtual primary care programme for employers. Following the announcement, Amazon’s stock decreased by 2%. Job cuts at Amazon are concentrated in the cloud, advertising, and streaming divisions. Which were once regarded as invulnerable before economic worries caused business customers to examine their spending.
Following cuts that started in November targeted at the company’s devices, e-commerce. Human resources organizations, the company’s streaming division, Twitch, is also going to experience layoffs. One of Amazon’s most lucrative businesses, Amazon Web Services (AWS). Which provides cloud services, is expected to generate more than $40 billion in revenue in 2021. However, since competitors like Microsoft Azure and Google Cloud have been gaining market share. AWS has had to contend with more competition. With its advertising revenue expected to reach close to $28 billion in 2021. Amazon’s advertising business has also been a source of growth for the company. Advertising spending has decreased because of the pandemic, and Amazon is now up against more competitors like Google and Facebook.
Also Read: Samsung to Invest in Smart Manufacturing Capabilities at Noida Plant in India
To manage economic uncertainty and reduce costs and headcount in the near future. Amazon has made job cuts at its cloud, advertising, and streaming businesses. News of layoffs in the technology sector the job cuts announced by Amazon. Are the most recent in a string of layoffs in the technology industry. Which has seen some of the most valuable companies in the world, such as Microsoft and Alphabet. Sever ties with staggering numbers of workers they had courted in great numbers. Economic uncertainty brought on by the pandemic has prompted businesses to scrutinize their spending and make cost reductions. To control costs, many technology companies were compelled to make job cuts. The parent company of Facebook, Meta Platforms, revealed last week that it would eliminate 10,000 positions. This year, in addition to more than 11,000 in 2022. The need to refocus on its core services and products was cited by Meta Platforms.
Technology companies will probably continue to be under pressure to streamline their operations. As well as manage costs in the face of economic uncertainty and increased competition. Which could result in additional job cuts. Amazon’s decision to cut another 9,000 jobs in a time of economic uncertainty. Shows how hard it is for the tech industry right now. The company is cutting jobs in its highly profitable cloud and advertising divisions, where there is now more competition.