Unemployment is something unpleasant and no worker wants to hear about it. Those who work at Amazon must be worried because their company has decided to fire employees for the second time. Once more, they have announced the dismissal of up to 9,000 workers. This is a massive lay-off and it will affect many families in America.
Amazon announces the lay-off of 9,000 employees more in the coming weeks increasing unemployment. It was Chief Executive Officer Andy Jassy the one in charge of this announcement. According to the letters received by employees, there will be several areas affected by this job loss. Mainly, there will be firing in roles such as the human resources division, their cloud computing unit, Twitch, and advertising.
Why have they decided to lay off up to 9,000 employees at Amazon?
According to Andy Jassy, despite the fact that it was a very difficult decision they have to do what is best for Amazon in the long run. By doing so, they can invest more money in improving customer service and experience. So, they will be leaner but their investment will be much stronger. Not long ago, Amazon also decided to get rid of 18,000 jobs. Making unemployment rates higher twice does not seem to be good at all for workers in that field.
Somehow, having fewer employers will be a way to make sure Amazon’s financial situation is secure. This will be like a shield to protect the company from all the ups and downs in the global economy. But it will keep adding people to the unemployment figures from the Bureau of Labor and Statistics. There is a lot of uncertainty due to the current situation. That is why they have decided to reduce staff and costs. Another thing that may have affected is the fact that the pandemic is over. They had to hire more people due to the growing demand since everybody wanted to buy from home rather than go shopping to avoid trouble or due to restrictions.
Is Amazon the only company that is increasing unemployment rates?
Unfortunately, there are more companies that are laying off more employees. There are many companies that are trying to reduce costs by firing more people. Take for example Meta, which is dismissing more than the 9,000 figure from Amazon. In their case, they are going to lay off about 10,000 workers. Apart from the end of the pandemic, the high-interest rates are making people spend less money. This is making the economy slow down and causing unemployment in certain jobs. Another big company is also eliminating 12,000 jobs, so this is not an isolated case.
As for Amazon, there will be several teams that will see a job loss. For instance, the area of People, Experience, and Technology, which is their human resources team. Those in advertising will also see how their number of employees will go down. Amazon Web Services will see another job cut. Just like the Twitch workers. This reduction will take place next April. Not only will this mean a job cut, but it will also mean hiring fewer people. This is becoming more common in technological companies, let us hope the situation improves and unemployment does not keep going up.