Amazon may lay off 20,000, managers told to note performance issues

Ecommerce giant Amazon is reportedly planning to lay off around 20,000 employees over the next few months, says a report by ComputerWorld. Firings will happen from different departments, including distribution and technology. Corporate executives won’t be spared the axe either.

The company employs more than 1.6 million people globally. According to anonymous sources quoted in the report, the layoffs will affect employees at all levels in the company. Amazon has reportedly told its managers they should mark performance-related issues among employees.

Also read: Amazon to exit third business in India — wholesale distribution

The New York Times reported in November that Amazon planned to lay off 10,000 employees. That would have been the biggest layoffs in the company’s history. However, now it appears from the report that the number could be doubled.

Slowdown in ecommerce growth

According to the sources quoted, the laid-off corporate employees will receive a 24-hour notice and severance pay according to the company’s contracts. One source said employees have been in fear since they learned about the downsizing drive.

The source claimed that Amazon is targeting a particular department or location. Apparently, Amazon over-hired during the pandemic and is now cutting costs.

Also read: Amazon employees live in fear, look for clues as co on layoff spree

In October, Amazon predicted a slowed sales growth for this holiday season, which usually records the highest sales. The company had blamed inflation for this slowdown, saying consumers and businesses have less money to spend.

It was reported later that the company had cautioned its employees in unprofitable units to begin looking for opportunities within the company. There has been a drastic slowdown in e-commerce growth after the pandemic, as shoppers returned to physical stores. Amazon shelved warehouse openings and froze hiring in the retail group.

(With agency inputs)