On January 18, Amazon slashed off employees in the US, Canada, and Costa Rica, as said in the e-commerce giant’s memo to its staff. Its stock price declined by -0.61% to $95.46 per share. The company is anticipated to decline by -0.32% to $95.15 in the upcoming session.
In the US, the technology sectors made staff cuts, slashed some costs, and prepared for a worse global economy. However, the US labor force requires companies to submit a 60-day notice in making layoffs. The cutoff affected 18,000 of the workforce at Amazon.
According to analysts, the e-business company did a manpower layoff for 2,300 workers in Seattle and Bellevue.
Amazon Chief Executive Andy Jassy said it would impact the e-commerce and human resources sector earlier this month. It would take affect about 6.00% of the 300,000 corporate employees.
Moreover, its Retail Chief Andy Herrington said the cuts were part of the business’s efforts to invest in low prices and fast shipping. Also, he said they would continue investing meaningfully in growth areas. This includes groceries, business-to-business sales programs, services for third-party sellers, and healthcare.
In the retail head’s memo, it was mentioned that Amazon would give severance, provide transitional health benefits, and job placements. This applies to all its affected workers.
AmazonSmile Shut Down on February
On Wednesday, Amazon plans on closing its charity donation program, AmazonSmile, to cut costs. It has already donated more than $377.00 million since its launch in 2013.
Amazon posted on its website that it will shut down AmazonSmile on February 20. Despite that, it will continue to invest in areas in which it can. For instance, it will keep on assisting with disaster relief, affordable housing, and community assistance programs.
Furthermore, the shuttering of AmazonSmile reflects Jassy’s review of the business’ expenses. It prepares for the downfall of the economic outlook and their slowing retail growth. Additionally, he paused warehouse expansion and some experimental projects, such as its telehealth services and a video-calling device for kids.
