Why Amazon is firing 9,000 more workers

A further 9,000 jobs will be cut by Amazon, bringing the total number of layoffs in 2023 to 27,000, according to the company’s announcement. What justification did the business give? How does this affect India?

The e-commerce giant Amazon said on Monday (March 20) that it would cut another 9,000 jobs in the next weeks, bringing the total number of employees it has let go in 2023 to 27,000, months after announcing its largest-ever round of layoffs.

The development highlights the crisis that the American tech sector is currently facing. Meta, Amazon, and Google, companies that have typified the industry’s explosive rise over the past ten years, are struggling. Due to solvency concerns, banks that catered specifically to the needs of technology industries, including Silicon Valley Bank (SVB), had to close.

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There have been spillover consequences in India as well, with staff being mass-fired and Indian start-ups feeling the brunt of SVB’s closure.

Why is Amazon firing people yet again?
Amazon’s CEO, Andy Jassy, informed employees in a memo that the second stage of the company’s yearly planning process, which was finished this month, had resulted in more job cutbacks. Amazon will still hire, he claimed, in a few key locations.

Amazon made its largest-ever round of layoffs in January when it announced it would terminate 18,000 employees globally.

This time, the layoffs will also affect lucrative divisions like its AWS cloud computing unit and its expanding advertising company.

“… given the unstable economic climate in which we currently live and the uncertainty that exists in the immediate future, we have decided to

Some people might wonder why we didn’t disclose these role reductions at the same time as the ones we did a few months ago. The quick explanation is that not all of the teams finished their studies in the late fall. Rather than rushing through these assessments without the necessary care, we elected to disclose these decisions as we made them so people could have the information as soon as possible, he continued.

Though the first phase of that project will open this June with 8,000 employees, the corporation said earlier this month that it will halt development on its headquarters facility in northern Virginia.

Times are difficult for tech companies.
The change occurred just days after Meta announced it would eliminate an additional 10,000 jobs, and only four months after it had laid off 11,000 workers. A series of widespread layoffs have occurred across corporate America as a result of the weakening economy, including Big Tech companies like Google and Microsoft as well as Wall Street banks like Goldman Sachs and Morgan Stanley.

The failure of Silicon Valley Bank earlier this month, which predominantly conducted business with start-up companies, raised red flags for emerging industries and even established ones like Pinterest and Shopify due to their high exposure to the bank.

quakes in India
The global companies’ announced layoffs have affected thousands of individuals in India. The Indian Express previously covered how the effects of SVB affected Indian start-ups, who were on the verge of failure due to worries that they could have to close their doors due to a lack of funding.

In addition to large IT firms and start-ups, even established Indian IT firms that helped to popularise the country had to adapt to the new economic climate. Notwithstanding the macroeconomic headwinds that the business as a whole was experiencing last month, Wipro offered new hires a lowered wage package of Rs 3.5 lakh per annum (LPA) from its earlier offer of Rs 6.5 LPA.