Business

Amazon to sack 20,000 employees

In a bid to size down its workforce, Amazon is planning to lay off 20,000 employees in the coming months. The company had over-hired during the pandemic.

According to a report published in Computer world, the decision of company will affect all its employees ranked right from level 1 to level 7 and the layoffs plan includes centre workers, technology staff and corporate executives.

Company managers have been reportedly told to identify work performance problems among employees. The e-commerce giant has a 15 lakh workforce and if the company undertakes the layoff, it would be the largest staff reduction in the company’s history equivalent to about 1.3 per cent of its total workforce.

There is a sense of fear among employees in the company as the report states that the employees will receive a 24-hour notice and severance pay.

In an open letter to employees, then Amazon CEO Andy Jassy had given information about role eliminations and cost-cutting measures.

He stated, “We communicated the difficult decision to eliminate a number of positions across our Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization. Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments.”

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