Amazon is cutting jobs in the US, Canada and Costa Rica as part of mass layoffs


Amazon will cut some jobs in the United States, Canada and Costa Rica by the end of Wednesday as part of its plan to lay off 18,000 workers, the e-commerce giant said in a memo to staff reviewed by Reuters.

The layoffs are the latest in the US tech sector, with companies cutting bloated workforces and cutting costs to reverse pandemic-era excesses and prepare for a deteriorating global economy.

The company is laying off 2,300 employees in Seattle and Bellevue, according to an update on the Worker Adjustment and Retraining Notification (WARN) site. U.S. labor law requires companies planning a mass layoff to notify their employees 60 days before the closure.

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Amazon CEO Andy Jassy said earlier this month that the cuts, about 6 percent of the company’s roughly 300,000 employees, would mostly affect its e-commerce and human resources divisions.

According to a report earlier this month, tech companies will lay off more than 150,000 workers in 2022, contributing to a 649 percent increase in job losses from 2021. Analysts say Amazon’s massive layoffs indicate that the wave of job losses sweeping through the tech sector, may last longer in 2023.

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Microsoft said earlier on Wednesday that it would cut about 10,000 jobs and collect a sum of $1.2 billion (approximately Rs. 9,800 crore). In a memo sent to staff and posted online, CEO Satya Nadella outlined economic conditions that force “tough choices” like these, but stated that Microsoft will continue to invest in “strategic areas” for its future. Employees affected by the cuts will be notified immediately, but the process is not expected to be completed until the third quarter of 2023.

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© Thomson Reuters 2023

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