Technology Why Amazon is still cutting its workforce

Why Amazon is still cutting its workforce

This announcement of 9,000 job cuts at Amazon is like a cold shower, after a first wave of layoffs last year. In total, these are nearly 27,000 fewer jobs worldwide for the American e-commerce giant. Like other Tech groups, Amazon is suffering a major downturn.

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With the Covid, the demand for home deliveries had exploded, and the group had hired with a vengeance. The firm founded by Jeff Bezos then had more than 1.5 million employees worldwide. But there, with the rising cost of living, consumption has fallen. People are buying less, including online. Advertisers cut their budget. All this in an uncertain economic context, marked by rising interest rates, which reduces investments. Result: the group tightens the screw. In an internal letter addressed to employees, the general manager says he wants to rationalize costs and staff

The tech degreases everything

These dismissals will probably concern France, even if it is not yet known exactly which positions will be eliminated. The employees concerned will be notified in a few weeks, during April. This new wave of layoffs should however affect the communication activities, but also videos which were nevertheless considered very profitable until now. We must also expect cuts in human resources or in so-called support, IT, clouds in which Amazon stores the data.

It’s a disaster in the tech industry right now. Since January, it hasn’t stopped! 12,000 jobs cut at Google, 10,000 at Meta, Facebook’s parent company, 1,000 at Microsoft, etc. Job cuts that come on top of more than 100,000 fewer jobs last year.

No more booms in videoconferencing, e-commerce, platforms… Like a bursting bubble. What, moreover, to bring down the stock market values ​​of the sector and put down the banks which financed them like Silicon Valley Bank.

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