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Daily Mirror
Daily Mirror
Business
Liam Buckler

Amazon set to begin its largest jobs cull in history affecting 18,000 employees

Amazon is set to begin its largest jobs cull in history affecting more than 18,000 employees.

The online giant announced plans earlier this month to make the largest cuts to their workforce in its 28-year history.

Andy Jassy, CEO of Amazon, confirmed the cuts would see over 18,000 workers in its human resources and stores lose their jobs.

Many of the jobs being axed include workers on Alexa devices, the voice assistant which launched in 2014.

Jassy told employees earlier this month: “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.”

Amazon said in November they were looking to axe staff after the company went on a huge hiring spree during Covid.

Amazon has started culling its workforce (Getty Images)

They had 1.6million workers by the end of 2021 up from 719,000 in 2019.

However, the company is also facing difficulties with slow online sales, rising expenses and inflation.

Amazon has also put a temporarily halt on hiring workers across its workforce in addition to trimming down its warehouse expansion and experimental projects.

Retail analyst Neil Saunders, managing director of GlobalData Retail, said the Amazon job cuts were "a big number" but claims the company went on a huge hiring spree "some of which was based on irrational exuberance during the pandemic."

Amazon boss Jeff Bezos went on a huge hiring spree in the pandemic (POOL/AFP via Getty Images)

He added: "We're now in a different era and Amazon is on a diet", with Saunders predicting more heavy cuts in the months and years ahead.

Tech companies are following suit including Meta, which owns Facebook, and Twitter who have made drastic cuts amid a deepening and gloomy economic outlook.

In addition, Microsoft is set to cut 11,000 jobs as the technology industry responds to a slowing demand.

Morningstar analyst Dan Romanoff said: “From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen.”

They plan to cut jobs in a number of engineering divisions as well as in human resources.

Microsoft, as of June 30, had 221,000 full-time employees, including 122,000 in the United States and 99,000 globally.

In July last year the company laid off just under a 1,000 workers across several divisions.

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