Amazon opens the ball of job cuts this year. The Seattle firm has announced the dismissal of part of its teams in the United States, Canada and Costa Rica. Doug Herrington, head of retail, and Beth Galetti, head of the human resources department, sent two emails, viewed by CNBC, to all employees informing them of the situation.
Up to 18,000 jobs cut
The human resources and stores divisions are the two sectors which should be the most strongly impacted, according to our colleagues. All the American, Canadian and Costa Rican employees concerned by the plan would have been thanked this Wednesday, January 18. In the other regions of the world, job cuts are expected to take place over the next few weeks. In China, Amazon is notably waiting for the end of the Lunar New Year.
These cuts were announced earlier this month and are expected to affect a total of 18,000 people. After a period of strong growth in 2020 and 2021, during the Covid-19 pandemic, Amazon is now facing a slowdown in demand. With the general increase in prices since the beginning of last year and the war in Ukraine, customers are now turning to basic necessities. Too low demand, coupled with a still unstable global economic situation, which would have led CEO Andy Jassy to take drastic cost-cutting measures.
No layoffs in France
On the other hand, France would not be impacted by the massive layoffs. In Europe, only the United Kingdom, Spain and Luxembourg could be concerned, indicates the CFDT Amazon union to Franceinfo.
Amazon has also just ended its Smile charity program. The 10-year-old tool allowed customers to choose a charity to which the company donated 0.5% of their purchases. “The program has not grown to create the impact we had originally hoped for. With so many eligible organizations — over a million worldwide — our ability to make an impact was often too scattered”, explains the company in a press release. The US group, however, did not specify whether the closure was linked to the latest austerity measures.