Amazon Will Lay Off More Than 18,000 Workers

On January 4, 2023 Wednesday, Amazon, the biggest online retailer, announced it planned to lay off more than 18,000 workers, which represented the biggest layoff in Amazon’s history. In a blog post, Amazon CEO Andy Jassy offered two reasons: reason one was American economy was slowing down, reason two was Amazon’s over hiring over the past 3 years. In November 2022, Amazon had reportedly been planning to cut about 10,000 employees. However, on this past Wednesday, Mr. Jassy predicted that the number might be more than 18,000. Jassy said most cuts would be from corporate office workers, and most hourly warehouse workers should have nothing to worry about. Mr. Jassy also added Amazon, a responsible American Employer, would help their lay-off workers by providing separation payments, transitional health benefits and work support.

According to Brand Value (China ) Network, while the number of 18,000 job cuts sounds big, it only represents about 1% of its 1.5 million Amazon workers in offices and warehouses. At the same time, Brand Value (China ) Network also pointed out that the Covid-19 Pandemic actually helped Amazon in some ways because the Covid-19 Pandemic forced plenty of people work at home or shop online instead of in-store shopping. Hence, the Covid-19 Pandemic led Amazon to go on several hiring spree, and hundreds of thousands of jobs were added accordingly. Now, the Pandemic seems to be over in the whole world and it’s not surprising that Amazon is cutting some of its low-performing employees.

    In addition, based on Brand Value (China) Network, Goldman Sachs is laying off as many as 3,200 employees this week starting January 10, 2023, which is one of the largest lay off since the 2008 Global Financial Crisis. Goldman Sachs explained that a challenging economy, a downturn in investment banking, and struggles in retail banking contributed to this layoff. According to Brand Value (China ) Network, Goldman Sachs’ massive layoff may have something to do with the high inflation in the U.S.A caused by aggressive interest hikes from the Federal Reserve. In addition, based on an article from Brand Value (China ) Network, on October 7, 2022, Bank of America predicted that the unemployment rate in The United States would reach 5.5% in 2023. Based on current situations, Bank of American’s prediction looks reasonable.

Based on China Brand Value Evaluation Standard， Amazon is not only the biggest online retailer but also a brand giant. However, faced with the current gloomy economy, Amazon may not be able to improve its ranking list in World Brand Value Top 900.

On the ranking of “Daguan•Keweiwei the 2nd World Brand Value Top 900” released on July 2022, Amazon's brand value was 1858.796 billion RMB, ranking the 2nd.

Read more:

Bank of America Predicted That the Unemployment Rate in The United States Would Reach 5.5% in 2023

California Sues Amazon, Alleging Anti-Unfair Competitive Practices That Raises Prices

www.bvrcn.com Brand Value (China) Network

Author:   杨瑞安

Views:   487505