Recently, the atmosphere of layoffs is spreading in the United States. American "Internet celebrity " Musk has completed the acquisition of Twitter and is implementing large-scale layoffs on Twitter. It is reported on the Internet that the proportion of Twitter layoffs is as high as 70%, but in reality it may be far less than that, but there are thousands of people. While we were still eating Twitter, the e-commerce giant Amazon also heard the sound of layoffs.

The peak season is about to start, and Amazon begins to lay off workers

Amazon plans to lay off 10,000 workers this week, according to the New York Post. The total number of layoffs is currently uncertain. If it really reaches about 10,000, it means that Amazon will lay off about 3% of its total employees, accounting for less than 1% of its approximately 1.5 million employees worldwide. Of these 1.5 million employees, the vast majority are hourly workers. The timing of Amazon's layoffs is also very subtle, choosing to lay off employees before the big promotion. Presumably layoffs are imperative. Amazon has never experienced layoffs of this magnitude before. Since the outbreak began, Amazon's business has grown, and the number of employees has also continued to grow. In 2021, Amazon's workforce will be about twice that of the same period in 2019.

Why did Amazon lay off workers on a large scale?

Amazon 's third-quarter financial report shows that as of the end of September, Amazon has lost $3 billion this year. In 2021 and 2020, the company will record net profits of approximately US$33 billion and US$21 billion, respectively. Therefore, Amazon's cash flow is relatively tight.

Amazon's business growth has slowed down, and during the epidemic, Amazon's rapid expansion has caused Amazon's operating costs to skyrocket. In addition, labor costs have also increased significantly. The pressure comes to the fourth quarter. Whether Amazon can make a profit this year depends entirely on its revenue and net profit in the fourth quarter. And substantial layoffs are one of the ways Amazon chooses to cut costs. Amazon's stock price also plummeted. 160 billion yuan was evaporated overnight. After news of layoffs came out, the stock price rebounded.

How to deal with the impact of Amazon layoffs?

According to sources, Amazon's layoffs mainly affect the company's equipment, retail and human resources departments. And did not mention the layoffs of the FBA warehouse. Therefore, it should not have much impact on the peak season. It is mainly the personnel adjustment within Amazon. Black Friday is about to start, all sellers should be prepared before the big promotion. You don't need to be affected by Amazon's internal adjustment news, just follow your original rhythm. For more latest news about Amazon, please continue to follow us!