In mid-November, it was reported that Amazon, the technology and ecommerce giant, was planning to lay off as many as 10,000 employees in the coming months.
Now, however, Computerworld reports that the Company is thinking of laying off 20,000 employees across all businesses and divisions. With this layoff, employees in distribution centres, corporate roles and technology functions will be impacted.
It is reported that this will be the biggest layoff for Amazon in its history.
In a statement to the media, Andy Jassy, CEO, Amazon, said that the Company is looking at laying off people but did not confirm any numbers. He mentioned that people working in people experience business physical stores will get impacted.
It is said that all businesses will be impacted in this layoff with no specific location mentioned. In fact, employees working in higher bands will also get fired. Amazon has bands from one to seven and all are expected to be impacted.
It is further mentioned that the laid off employees will receive a mail confirmation and severance pay 24 hours prior to their termination.
The report further says that the Company that was hiring in big numbers during the pandemic had overhired, and that is one of the reasons for this layoff. Now, as a cost-cutting activity, Amazon is firing employees in the name of streamlining the business.
Managers in the Company have been asked to check performance problems in their teams in the wake of the layoffs.
Teams at Amazon are looking at placing the laid-off employees either in other roles within the Amazon group of business, or offering them separation packages.
The severance will include separation payment, transitional health insurance benefits, and external job-placement support.
Amazon has seen a decline in its ecommerce business. In fact, the year-on-year revenue for Amazon Web Services has also witnessed a decline this year. The quarter ending September saw a revenue growth of 27 per cent, which was less compared to previous two quarters with 33 per cent and 36.5 per cent, respectively.
