Amazon has cut nearly 100,000 employees, the largest sequential reduction in its history. This reduction has been mainly done in its fulfillment centers and distribution network. The e-commerce company still employs more than 15 lakh people.
During its quarterly earnings call on Thursday (July 28), Amazon’s chief financial officer, Brian Olsawasky, said, “I think it’s right for people to step back and question their hiring plans. We do that.” are doing as well. I don’t think you’re going to see us recruiting at the same pace that we did last year, or the last few years.”
In the past year, Amazon has cut its net headcount by 27,000, he added. “So, we are very transparent about the fact that we hired a lot of people to cover the omicron variant in Q1.”
Olsavsky also said the company added 14,000 workers in the first quarter of this year.
Google’s hiring is also slowing. This month, its chief executive officer Sundar Pichai told employees: “Like all companies, we are not immune to economic downturns… The hiring hiatus is part of this slowdown to allow teams to prioritize their roles and year. It had about 164,000 employees at the end of March, an increase of 10,000 in the second quarter.
Ola is reportedly in the process of laying off around 1,000 employees. However, it is aggressively hiring for its electric mobility business. This process continues across verticals that include mobility, hyperlocal, fintech, and its used car businesses. According to an ET report, those targeted for termination have been asked to resign voluntarily. The firm is delaying the evaluation process for some of the employees it wants to fire, so that they resign.
Amazon reported a loss of $3.84 billion, or $7.56 per share, for the first quarter of the year. A year earlier, it reported a profit of $8.1 billion, or $15.79 per share, for the first quarter.
Financial stress has forced startups in India to resort to cost-cutting holidays. Last week, edtech unicorn startup Byjo laid off more than 600 employees, both permanent and contract.
Before Byju, new generation enterprises including Vedantu, Unacademy and Cars24 have also shed over 5,000 employees in India this year. Ola laid off around 2,100 employees between January and March this year, followed by Unacademy (over 600), Cars24 (600) and Vedantu (400). In addition, e-commerce firm Masho has laid off 150 employees, furniture rental startup Furlenko 200, influencer-led social commerce startup Trail 300 and OkCredit 40.
Video streaming platform Netflix began scaling back some marketing initiatives in April, then cut 150 jobs in May and 300 in June. Last quarter, it reported $70 million in divestment costs and shed an additional 970,000 customers. In 2021, Netflix had 11,300 employees.
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