Why Amazon Is Firing 27,000 Employees? They Hired 220% More Employees Than Needed In 2022


Sheetal Bhalerao

Sheetal Bhalerao

Mar 25, 2023


Interestingly, the e-commerce giant, Amazon posted over three times the number of job openings actually approved in 2022.

Why Amazon Is Firing 27,000 Employees? They Hired 220% More Employees Than Needed In 2022

As a result, this has led to an over-hiring situation, according to an insider reported, quoting from an internal document.

Layoffs Triggered By Over Hiring Situation

During this time, a team within the Web Services Department had posted 24,988 open positions, when in fact there were approvals for only 7,798, according to Insider.

For the unaware, this e-commerce giant recently announced a second round of job cuts, after eliminating 18,000 roles in January. 

It appears, like several other big corporations, this ecommerce giant also cited over-hiring in periods of boom which is the reason behind these mass layoffs.

This latest termination from Amazon will affect 9,000 employees across AmazonWeb Services, People, Experience, and Technology (PXT), Advertising, and Twitch.

Moreover, Amazon acknowledged the over-hiring further admitting its processes were prone to inconsistency, error, and potential mis-use” in an internal document.

Because of such over-hiring, leaders would “squeeze people in where they could,” said one of the company’s former recruiting managers.

Earlier this week, because of uncertainty in the near future, the company had to be “more streamlined in our costs and headcount”, said Amazon CEO Andy Jassy.

Further, he described the additional layoffs as necessary for downsizing, after sustained hiring over the years.

Sharing Decision And Being Informed

The Amazon CEO noted, “Rather than rush through these assessments without the appropriate diligence, we chose to share these decisions as we’ve made them so people had the information as soon as possible,”.

In recent times, most of the Big Tech, except Apple, has laid off or announced plans to sack employees.

For instance, Meta has sacked nearly 25 percent of its workforce in a matter of months. 

On the other hand, Google announced 12,000 job cuts in January.

Similarly, Microsoft announced 10,000 employees in the coming months.


Sheetal Bhalerao
Sheetal Bhalerao
  • 776 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online