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
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