Massive job cuts in the amazonone of the largest employers in the U.Sshow that the wave of layoffs sweeping the technology can extend, as the companies rush to cut costs, analysts said on Thursday.
The company’s chief executive, Andy Jassysaid in a statement that layoffs at Amazon will rise to more than 18,000 as part of a workforce reduction.
Tech companies will lay off more than 150,000 employees in 2022, according to tracking website Layoffs.fyi, as the demand boom seen during the pandemic turns into a bust.
“Further layoffs are certainly possible… given the scale of investment we’ve seen in 2020-21, we would probably think that some degree of caution might be appropriate,” said Russ Mould, chief investment officer at AJ Bell.
Coming out of the pandemic, job cuts in 2022 are up 649% from 2021, led by tech companies, according to coaching firm Challenger, Gray & Christmas.
The drop in demand amid a sharp rise in borrowing costs has led several industry executives to admit they have overhired during the Covid-19 crisis.
THE Goal laid off 11,000 people last year and Chief Executive Mark Zuckerberg said he had wrongly predicted the pandemic boom would continue.
The tech giants Microsoft and alphabetowner of Googlehave already suggested cost cuts, including layoffs.
The main head of salesforceMarc Benioff, said on Wednesday that the enterprise software company had hired “too many people” as it announced plans to cut 10% of jobs.
For Amazon, growth at its cloud unit, which brings in most of its profit, has slowed as companies cut spending, while its e-commerce unit is suffering from tight consumer budgets due to rising prices.
The crisis brought back memories of the dot-com bubble at the beginning of the century and the financial crisis of 2008, when tens of thousands of people lost jobs.
“Some of us will remember 2000 to 2003 as a huge bubble fueled by cheap money, high investor expectations and abundant money,” Mold said. “It will be very interesting to see if there will be a repeat.”
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
