Amazon begins layoffs in India; over 1,000 to be fired
A few days after CEO Andy Jassy confirmed that the company's mass layoffs will affect over 18,000 employees, Amazon has begun its second round of layoffs in India. Per Times of India, over 1,000 employees across various departments could be affected this time. Amazon began laying off employees last November. At that time, it was reported that the company would eliminate around 10,000 roles.
Why does this story matter?
- Amazon's decision to cut 18,000 jobs is by far the biggest in the ongoing 'layoff season.'
- The company has been going through a lean patch, with its market capitalization dropping from $1.69 trillion at the end of 2021 to $856.94 billion in December 2022.
- The layoffs are expected to bring it back to equilibrium, the one it lost during the pandemic.
Layoffs have hit Amazon offices all over India
In India, Amazon's layoffs are expected to affect various departments such as tech, human resources, and more. Jassy had mentioned Amazon stores and PXT organization (human resources) as departments that would be impacted the most. Per India Today, the layoffs have hit multiple departments in the company's offices in Bengaluru, Gurugram, and others. It seems that the company is mostly targeting loss-making teams.
Impacted employees are informed through emails
Amazon is sending an email to impacted employees to let them know that they have been fired. The email reportedly asks the employee to meet the leadership team on a specific date to get more clarity. Jassy had said that impacted employees will be notified starting January 18. The company is offering five months of severance pay, as per the email to affected employees.
Uncertain economy and rapid hiring led to the current situation
In his blog post, Jassy attributed the layoffs to an uncertain economy and overhiring by the company. Amazon was on a hiring spree during the pandemic. It even doubled its base pay ceiling to compete with other companies for the best talent. It can take solace in the fact that it isn't the only one to be hit by the post-pandemic layoff bug.
Changes will help pursue long-term opportunities: Jassy
"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," Jassy said in the blog post. "To those impacted by these reductions, I want you to know how grateful I am for your contributions to Amazon," he added.