Entertainment Post

E-Commerce Behemoth Amazon Announces Layoff

Jeff Bezos

Amazon is now preparing to cut thousands of office jobs. This is believed to be due to declining sales and concerns about an economic recession.

In addition, the layoffs could affect 3% of the e-commerce company’s employees, or about 10,000 people, US media said, citing unidentified sources. The job cuts would potentially affect departments like personal devices and e-commerce. 

The e-commerce giant has already implemented a staff freeze and halted a number of warehouse expansions.

Furthermore, they warned against over-hiring during the pandemic. It had taken steps to shut down parts of its business – postponing projects like a personal delivery robot.

Last week, the giant said cutting expenses would be a top priority in its annual review of business operations.

“As part of this year’s review, we’re, of course, taking into account the current macro-environment and considering opportunities to optimize costs,” the giant said in a statement at the time. 

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E-commerce Downtrend

According to media reports, the number of jobs affected by the layoffs has not yet been announced. After surging in business during the pandemic, Amazon has struggled with online sales.

While its revenue increased 15% in the latest quarter, the giant watches out for different outlook as the slowdown spreads into other regions. In addition, it has affected its cloud computing unit, Amazon Web Services, which has fueled its revenue for a long time. 

Founder Jeff Bezos recently resigned as chief executive but remained board chairman. The entrepreneur took to social media to say it was a time to “batten down the hatches.” 

Amazon is not the only tech firm that has grappled through difficult times. Meta – the parent company of Facebook, Instagram and Whatsapp – has decided to trim down 11,000 employees. It is identified as the greatest redundancy in its history, with roughly 13% of its labor force. 

Generally, US-headquartered tech firms cut over 28,000 jobs this year. However, it has reduced over two times a year ago, per a report from Challenger, Gray & Christmas. 

Generous Donation

In an interview with CNN, Bezos said he would donate his wealth to fight climate change and reduce inequality. The businessman had previously responded for not promising to donate his fortune.

Meanwhile, Warren Buffet, Microsoft’s Bill Gates, and Bezos’ ex-wife MacKenzie Scott all vowed to dedicate their fortune to a good cause. 

Bezos announced his decision following a $100 million donation to the country music icon and philanthropist Dolly Parton to use for charity. 

When CNN asked if he wanted to donate most of his riches within his lifetime, the businessman said: “Yeah, I do.” But he didn’t give any details on what cause he would give away his money to. 

“The hard part is figuring out how to do it in a levered way,” he said.

Previously, the magnate gave away $10 billion to the Bezos Earth Fund. He helped launch the foundation in 2020 to counter climate change. Furthermore, it came after many censured Bezos and other business people for spending massive amounts of money on trips to space rather than addressing problems on Earth.

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Photo: CBN

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