Since 2020, Amazon has created 400,000 jobs per year worldwide. The current situation, which has become uncertain, no longer makes it possible to continue employing so many employees. The administrators of this e-commerce giant have decided to put recruitment on hold for all its activities. A similar measure was adopted in October for its retail division.
Another break is in order
Amazon has been recruiting massive staff since the start of the COVID-19 pandemic. The number of employees has doubled; that is around 430,000 registered employment for the period from January to October 2020 alone. At this rate, the company would overtake the two largest employers on the planet, Walmart and National Petroleum, by 2023. Despite an increase in sales in the third quarter of 2022, Amazon will temporarily stop hiring.
” We expect to maintain this pause over the next few months and will continue to monitor economic and activity developments to make any adjustments we deem necessary. Generally, depending on the company’s activity or sector, we will hire replacements to replace employees who leave for new opportunities, and there are certain targeted areas where we will continue to hire people on a progressive basis. “, Beth Galleti, Amazon’s human resources chief, specified in her memo, shared on Thursday, November 4 by CNBC.
A relief as layoffs are taking place at most major tech companies, such as Twitter, Lyft and Stripe. Statista estimates that Amazon employed more than 1.6 million people full-time and part-time in 2021. This member of GAFAM claimed 56,000 employees ten years earlier. In France, the multinational has created almost 18,000 jobs, while the number of employees at Amazon in Canada is around 25,000.
A reduction in expenses
During the Covid-19 pandemic, Amazon made huge profits. The context was also favorable to recruit up to 100,000 additional employees to ensure the continuity of its logistics-related activities at that time.
The market then reversed with the economic slowdown caused by galloping and persistent inflation, lack of funding, interest rates that were often raised by the central banks. This observation forced Andy Jassy, the CEO of Amazon, to cut expenses, close some warehouses and services and check off experimental projects, such as its telehealth service.
” Fasten your seat belt “, is how Amazon’s HR manager qualifies this measure. A practice that serves as an alternative to layoffs at the moment.