Amazon is a famous online shopping platform and it has been said that it includes around 1.5 million workers in total. Recently it was reported that Amazon laid off a huge amount of its workers. This news was very shocking for the people and they began to search for why Amazon did that. Well, the number of workers laid off by Amazon is 10,000. In this guide, we will explain the reason why Amazon laid all these workers off and did it affect the sellers in any way or not. Make sure you stay till the end to cover all the information.
Why Amazon Laid Off Its Workers?
Amazon laid off a total of 10,000 workers in corporate and technology roles. This cut is the largest in the history of Amazon. People think that Amazon is in its money-saving mode that’s why it laid off its workers. Well, all these types of rumors are false.
At the start of November 2022, Amazon hired numerous workers for the Company to improve the performance of their Company. It was a good move but it did not go in the favor of Amazon. At the end of November, Amazon faced a huge backlash in its profits. Amazon saw the erosion of its profitability, not only that Amazon also lost market share in the retail sector.
After 2008, this was the worst time for Amazon. Amazon was planning to grow its business wider but ended up losing its upper place in e-commerce. Amazon’s growth in the economy became much weaker.
At this time, Amazon considered it best to lay off unnecessary or inexperienced workers from the company. According to people, Amazon laid off 10,000 which may be equal to half of Amazon’s workers but that’s false. Laying off 10,000 employees did affect the amount of total Amazon employees. It is because 10,000 workers are just equal to 1% of the total employees.
The reason given to the employees from Amazon for firing was ‘’unusual and uncertain macroeconomic environments’’. Amazon, David Limp gave a statement in which he told they will closely look into their employees and will lay them off if they will not be necessary for the Company. And will find new workers for that role.
David Limp also added that another reason for firing the workers is that role is no more required in the Company. It is not like Amazon gave their employees notice and asked them not to come from tomorrow. Amazon fired workers from their roles and gave them a time of 2 months to find another job or another role in Amazon Company.
Amazon also offered a package to employees who failed to find another role in the company. This package included transitional benefits, separation payments, and external job placement support.
Would It Affect The Sellers?
As Amazon started to lay off its employees, all the sellers became worried and started to search would this lay off affect them or not. Well, these layoffs may affect the workers a lot but the sellers will not be affected by it.
The number of consumers remained the same on the Amazon marketplace. It means that the percentage of consumers will not be affected and Amazon will remain the crowded platform with consumers.
And this is the good news for all the sellers, their sales will not be affected in any way. It is because Amazon is laying off workers that are not necessary for the company. Everything will remain the same for sellers. Even though, if you are a seller and face some difficulties make sure you contact Scale Fortune for their private label service.
The sellers may not need to worry about Amazon laying off workers, but the sellers should worry about the predicted recession. This recession can affect sellers’ profits a lot. So, if you are a seller, make sure you prepare well it.
Conclusion
This guide was all about Amazon laying off its workers. Here we explained the reason why and how Amazon laid off its workers. Other than that, we explained would this act of Amazon affect the sellers or not. We hope this guide was useful to you.
