The news: Big Tech’s bloodletting continues with reports that Amazon has plans to lay off 10,000 people in retail, devices, and human resources, per Insider.
Adjusting from pandemic hypergrowth: Amazon, like various other Big Tech companies, went on a hiring spree during the past two years. It added 427,300 employees in 10 months, which brought its total workforce to more than 1.2 million, per The New York Times.
Course correction: Amazon added up to 1,400 new workers a day in 2020, mostly as a response to the overwhelming reliance on ecommerce and delivery services as COVID-19 cases intensified.
The bigger picture: “Amazon is expected to see better profitability with the reduction in headcount,” said Nash. “Overall, this is a move that should help Amazon focus on its core business and improve its bottom line.”
Expect Big Tech companies to continue resorting to layoffs until the economy reveals a clearer picture of recovery.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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