The layoffs of large US technology companies have not stopped. Following Twitter and Facebook’s parent company Meta’s massive layoffs, the “New York Times” quoted sources on Monday as saying that online shopping giant Amazon (Amazon) will start sending large envelopes as soon as this week, and plans to cut about 1 Ten thousand people work, accounting for 3% of the company’s white-collar positions, and less than 1% of global employees. The Wall Street Journal also said the company would lay off thousands of people. If true, it would be the largest headcount reduction in Amazon’s history, mainly affecting the devices department, such as the Alexa technology of the intelligent assistant, as well as the retail and human resources departments.
Over the past two decades, technology companies have been the backbone of the booming U.S. stock market and have provided high-paying jobs. However, with the deterioration of the U.S. economic environment and inflation, technology companies have lost their glory. Amazon had announced a freeze on white-collar hiring earlier this month, explaining that the company is facing an unusual macroeconomic environment and expects to balance hiring and investment. According to reports, until this fall, Amazon has hired more than 1.5 million full-time and part-time employees, most of whom are warehouse positions. The layoffs this time are mainly white-collar positions.
A total of 120,000 people have been laid off in the technology industry
Meta announced the layoff of more than 11,000 employees last week. Twitter also reorganized its workforce after being acquired by the world’s richest man Musk, cutting about half of its employees to 3,700. According to industry job data, 72 companies have laid off more than 24,000 technology employees this month, making the technology industry a total of 120,000 people who have been laid off this year.
Recruiting a large number of manpower during the epidemic
Many companies blame two reasons. The first is that during the COVID-19 pandemic, everyone relied on the Internet for work or shopping, and so technology companies recruited a large number of people. As the pandemic recedes, so does the internet boom, replaced by offline life, and salaries for new recruits now seem too high. When FB founder Zuckerberg announced Meta’s layoffs, he also mentioned over-hiring during the epidemic and the decline in e-commerce performance. The second reason for the blood flow of technology companies is the uncertain macroeconomic situation, which makes major brands reluctant to spend money on electronic , which is the source of income for many technology companies. The central bank’s interest rate hikes have also increased the cost of capital for companies.
Originally published on AM730 https://www.am730.com.hk/International/America’s technology companies are bleeding into a river-New York Times-Amazon plans to lay off 10,000 people/348070?utm_source=yahoorss&utm_medium=referral