Amazon pauses corporate hiring amid economic headwinds
Amazon has joined the list of companies that have been caught in the ongoing economic headwinds. As a result, the company has decided to freeze corporate hiring for a few months. The retail giant's move was confirmed by senior VP Beth Galetti in an internal memo that has since been published on Amazon's blog. The company will still make necessary hiring.
Why does this story matter?
- Meta, Google, Microsoft, Snap, and now, Amazon - these are some of the biggest companies in the world which are engrossed in cutting costs.
- The year 2022 has been a tough one for these companies. Amid a tough macroeconomic environment, it is essential to keep the ship afloat.
- To accomplish that feat, it is necessary to cut expenses.
Hiring freeze is due to 'an unusual macroeconomic environment'
Amazon announced a pause on "incremental hires" in its corporate workforce. Galetti attributed this to "an unusual macroeconomic environment." The company wants to balance hiring and investments by keeping the economy in mind. "We anticipate keeping this pause in place for the next few months," wrote Galetti. In other words, the internet giant doesn't want to take a risk in a difficult financial environment.
The company will still hire in 'targeted places'
Amazon's corporate hiring freeze is not without exceptions. Galetti wrote that the company will continue to hire incrementally in "targeted places." It will also employ "backfills to replace employees who move on to new opportunities." This will depend on the "business or area of the company." The retail giant will "still hire a meaningful number of people in 2023," wrote Galetti.
Amazon has been struggling in the post-pandemic world
Amazon's corporate hiring pause is not surprising. The company had aggressively employed people at the peak of the pandemic. It has now run into the post-pandemic reality where people have returned to in-person shopping. Its struggles are magnified by the mounting inflation. The company's new CEO Andy Jassy has been focusing on cutting costs. Earlier this year, Amazon cut 99,000 jobs.