Amazon, one of the world’s largest e-commerce companies, recently announced that it will lay off 9,000 employees in the next few weeks, mostly in AWS, advertising, and Twitch. This comes after the company already laid off nearly 18,000 employees in the past. The decision was made as part of the company’s annual planning process, according to CEO Andy Jassy. However, Jassy also mentioned that the company will continue to hire in some strategic areas.
This news is not entirely surprising, given the ongoing trend of mass firings at top tech companies worldwide. However, what is notable is that Amazon is laying off employees in areas that have been major growth drivers for the company in recent years. AWS (Amazon Web Services), in particular, has been a key driver of Amazon’s revenue growth, and Twitch has been a major player in the gaming and live streaming industries.
It’s important to note that Jassy stated the reason for the delay in announcing the job cuts was due to teams still finishing their analyses in the late fall. Rather than rush through the assessments without the appropriate diligence, the company chose to share the decisions as they were made, so people had the information as soon as possible.
The pandemic has brought about numerous challenges for businesses across the globe, including reduced revenue and decreased demand for some products and services. While Amazon has seen a surge in demand for its e-commerce services, it has also faced challenges in other areas, such as supply chain disruptions and increased competition.
Amazon’s decision to continue hiring in some strategic areas suggests that the company is still optimistic about its future growth prospects.
Overall, the job cuts at Amazon are a sign of the changing times we live in. As the business landscape continues to evolve, companies will need to adapt and make difficult decisions to remain competitive and thrive in the years to come.
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