Amazon layoffs: The company will lay off more than 18,000 employees.

Amazon plans to lay off more than 18,000 workers as the global economy continues to deteriorate.

According to a memo shared with employees by CEO Andy Jassy, several teams will be impacted, including the human resources department and Amazon Stores.

“Companies that survive for a long time go through various stages. They are not constantly expanding their workforce “He stated.

Jassy previously stated in November that job cuts at the e-commerce behemoth would continue until early 2023. Several news outlets reported in the fall that Amazon planned to lay off 10,000 workers.

Amazon and other tech companies have significantly increased hiring in recent years as the pandemic has shifted consumer habits toward e-commerce.

As people return to pre-pandemic habits and macroeconomic conditions deteriorate, many of these seemingly untouchable tech companies are experiencing whiplash and laying off thousands of employees.

In his memo, Jassy stated that Amazon executives recently met to discuss how to streamline the company and prioritize “what matters most to customers and the long-term health of our businesses.”

“This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years,” he added.

According to Jassy, the layoffs will allow Amazon to pursue long-term opportunities with a lower cost structure. He did, however, describe the cuts as a “difficult decision,” noting that he is “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted.”

He added that the company will begin informing affected employees on January 18.

During the pandemic, Amazon’s business initially boomed as consumers relied on online shopping for almost everything.

This year, however, the company is dealing with a return to in-person shopping as well as rising inflation, which has sharply reduced consumer demand.

Amazon disappointed Wall Street in October with a holiday season forecast that fell far short of analysts’ expectations. Last year, the company’s stock dropped by roughly 50%.

A number of other tech founders and CEOs, including Jassy, have since admitted to failing to accurately predict pandemic demand.

Meta, the parent company of Facebook, recently announced 11,000 job cuts, the most in the company’s history. Twitter, which Elon Musk purchased for $44 billion, also announced widespread job cuts.

Salesforce announced this week that it would lay off 10% of its workforce.

Meta, Facebook’s parent company, eliminates 11,000 jobs, or 13% of its workforce.

Facebook parent Meta is laying off 11,000 employees, or about 13% of its workforce, as it deals with declining revenue and broader tech industry woes, according to CEO Mark Zuckerberg in a letter to employees sent out Wednesday.

The layoffs come just a week after Twitter’s new owner, billionaire Elon Musk, laid off a large number of employees. Several job cuts have occurred at other tech firms that hired quickly during the pandemic.

Zuckerberg also stated that he made the decision to hire aggressively, anticipating rapid growth even after the pandemic was over.

“Unfortunately, this did not go as planned,” Zuckerberg said in a prepared statement. “Not only has online commerce returned to previous trends, but the macroeconomic downturn, increased competition, and ad signal loss have resulted in much lower revenue than I had anticipated.” I made a mistake, and I accept responsibility.”

Because more people stayed at home and scrolled on their phones and computers during the pandemic lockdown, Meta, like other social media companies, benefited financially. However, as the lockdowns ended and people began to venture outside again, revenue growth began to slow.

A slowing economy and a bleak outlook for online advertising — by far Meta’s most important revenue source — have added to the company’s woes. Meta reported its first quarterly revenue decline in history this summer, followed by another, larger decline in the fall.

Some of the pain is specific to the company, while others are related to broader economic and technological forces.

Twitter laid off roughly half of its 7,500 employees last week as part of a chaotic transition as Musk assumed control. He tweeted that there was no choice but to cut jobs “when the company is losing over $4M/day,” but he did not elaborate.

Investors are concerned because Meta is pouring over $10 billion per year into the “metaverse” as it shifts its focus away from social media. According to Zuckerberg, the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people interact with technology.

Meta and its advertisers are preparing for a possible downturn. There’s also the issue of Apple’s privacy tools, which make it more difficult for social media platforms like Facebook, Instagram, and Snap to track people and target ads to them without their consent.

TikTok is also posing a growing threat, as younger people prefer the video-sharing app to Instagram, which Meta also owns.

“We’ve cut costs across our business,” Zuckerberg said, “including scaling back budgets, reducing perks, and shrinking our real estate footprint.” “We’re reorganizing teams to improve efficiency.” However, these measures will not bring our expenses in line with our revenue growth, so I’ve made the difficult decision to let people go.”

Employees will receive an email from Zuckerberg on Wednesday informing them if they are among those laid off. Due to the sensitive nature of that information, he said, access to most company systems will be restricted for those who lose their jobs.

“We’re keeping email addresses active all day so everyone can say goodbye,” Zuckerberg explained.

Former employees will receive 16 weeks of base pay plus two weeks for each year they worked for the company, according to Zuckerberg. Employees’ and their families’ health insurance will be extended for another six months.

Meta Platforms Inc. stock jumped 4% before the market opened on Wednesday.

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