The layoffs are the latest in the U.S. technology sector,
with companies cutting their bloated workforce and slashing costs to reverse
pandemic-era excesses and prepare for a worsening global economy.
The company is terminating 2,300 employees in Seattle and
Bellevue, according to an update on the Worker Adjustment and Retraining
Notification (WARN) site. The U.S. labour law requires companies planning a
mass layoff to inform employees 60 days before the closure.
Amazon Chief Executive Andy Jassy said earlier this month
the cuts, about 6 percent of the company's roughly 300,000 corporate employees,
would mostly impact the e-commerce and human resources divisions.
According to a report earlier this month, tech companies
shed more than 150,000 workers in 2022, contributing to a 649 percent surge in
job cuts from 2021. Analysts say that Amazon's mass layoffs indicate that the
wave of job cuts sweeping through the tech sector could stretch into 2023.
Microsoft said earlier on Wednesday it would cut about
10,000 jobs and take a $1.2-billion charge. In a memo sent to staff and
published online, CEO Satya Nadella outlined the economic conditions that are
forcing "hard choices" such as this, but stated that Microsoft will
continue to invest in "strategic areas" for its future. Employees
affected by the retrenchment drive will be notified immediately, however, the
process is expected to be complete only by the third quarter 2023. © Reuters
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