Amazon defers joining dates of IIT, NIT graduates: Here's why
What's the story
The tech sector has been anything but stable over the past few months. While job cuts have been a common theme, there were many cases of companies keeping new recruits in limbo. Amazon has now joined the second list. According to Business Today, the company has deferred the joining dates of many campus hires from prestigious institutes like IITs and NITs.
Context
Why does this story matter?
The last few months have been scary for fresh IT graduates in India. Several companies, including Infosys, Tech Mahindra, and Wipro have delayed the onboarding of freshers. Meanwhile, IT companies like LTIMindtree rescinded offer letters to many freshers. In some other cases, many candidates are in fear of their offers expiring. This phenomenon puts freshers in a tough position.
Delay
Freshers received emails about the postponement of joining dates
Amazon's decision to defer offer letters has come as a surprise to many freshers. "I was supposed to join in June, but I got an email from HR saying that the offer has been deferred. My next joining is set in January," an IIT Bombay graduate who was recruited as a software development engineer told Business Today.
NITs
Amazon revoked some offer letters to NIT graduates
This is not particular to IIT Bombay. According to the same person, the joining dates of people from other campuses have also been postponed. The company is handing out the same treatment to NIT graduates too. "Offer letters of NIT students have also been deferred," said an NIT placement cell coordinator. The company has also revoked some offer letters, said the coordinator.
Official words
Amazon is ready to offer 'financial assistance'
Amazon has issued a statement on the issue. "In light of the challenging economic conditions, we're delaying the start dates for some of our college hires by up to six months," the company's spokesperson said. The retail giant is "offering assistance to address any financial impact." "Amazon remains committed to university recruiting and developing next generation of leaders and builders," the spokesperson added.
Layoffs
Amazon has fired around 27,000 employees
The report about the deferred offer letters comes against the backdrop of mass layoffs by Amazon. The company has fired around 27,000 employees across two rounds of job cuts. The terminations have also affected employees in India. A week ago, the retail giant axed 500 staffers across various divisions, including Amazon Web Services (AWS), human resources, and support functions.
Cost-cuts
Amazon is on a quest to cut costs
Amazon enjoyed a fruitful pandemic that saw the company hire in bulk. However, the post-pandemic economy hasn't been kind to the retail giant. The firm is now on a cost-cutting mission. The layoffs and deferred offers are part of that. Several tech companies have chosen workforce reduction as a way to cut costs as they deal with an unpredictable economy.