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Amazon prepares for the Great Recession

Amazon prepares for the Great Recession

Ago Amazon Founded in 1994, never stop growing. This growth has translated into jobs. So much so that it’s currently the second-largest private company with the most employees: 1.6 million people paid by the internet giant. But this growth stopped in 2022. Amazon cut 100,000 jobs worldwideIt is a decision unprecedented in its history that can only be understood as preparation for the great recession that awaits us.

2022 will be a bad year for As for Amazon, which incurred huge losses in the first quarter As the economy teeters on the brink of recession.

Amazon is preparing for the Great Recession: it is cutting 100,000 jobs, an unprecedented decision in its history. REUTERS / Dado Ruvic / Illustration

Amazon reported its second consecutive quarterly loss, but its revenue beat Wall Street expectations, sending its shares soaring. Compared to a profit of $6.4 billion a year ago, the company posted a loss of $3.15 billion The first quarter of this year, almost lost 1,600 million in the three-month period ending June 30.

This is its first quarterly loss since 2015. But the company still generated £99.5 billion in revenue. The Seattle-based e-commerce giant said it was making progress in curbing some of the cost overruns from its massive expansion during the coronavirus pandemic. COVID-19…and one such abuse appears to be the mass recruitment of workers.

Between 2019 and 2021, Amazon has nearly doubled the number of warehouses and data centers it rents and owns to keep pace with growing consumer demand. of online shoppers during the pandemic. But with consumers changing their habits, Amazon now has too many workers and too much space, adding billions in additional costs.

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Amazon Chief Financial Officer, Brian Olsavsky, He said the company is slowing down its expansion plans for this year and thereafter to better match customer demand. Amazon has reduced its direct workforce by nearly 100,000 peopleAnd the As mentioned by Baronswhich is the largest consecutive decline in its history, particularly in its distribution centers and in its distribution network.

E-commerce giant Continue to employ more than 1,500,000, the highest number in the technological world. According to Brian Olsavsky, Amazon plans to be more cautious in hiring at its headquarters and other facilities in the future.

“I think it’s right for people to step back and question their hiring plans. We’re doing that too. I don’t think we’re going to be hiring at the same rate as last year or the last few years,” he told reporters after the company presented its quarterly results.

In a call with analysts, Olsavsky said the company added 14,000 workers in the first quarter.Last year, we reduced our net workforce by 27,000 people. So we are completely transparent about the fact that we hired a lot of people in Q1 to cover the omicron variant.”

Fortunately, this variant calmed down, The company was left with a higher workforce. He added, “We’ve gone back…by adjusting our staffing levels and natural attrition, and that’s pretty much…it sort of flattened out in late April or early May. So, that’s dominated the quarterly cutback.” “.

Amazon said it now sees stabilization in its workforce.“It was a very tough working period in the second half of last year, and it didn’t come quickly out of the blue. So we are definitely keen on that and making sure we have a good workplace and environment that attracts employees,” Olsavsky said.

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