Amidst the threat of a possible recession which has been flagged by several notable economists and finance experts in the US, the major tech giants based in the country have started taking the route of mass layoffs, in order to ensure the cost-cutting in a move to brace up against the recession.
On the line with Twitter and Meta, the e-commerce giant Amazon has started making mass layoff in the company beginning Wednesday the reports for which was making rounds for over weeks.
Guiding the company’s move their hardware chief Dave Limp in a memo written to the employees showed, "After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required,” which was made on Wednesday only.
Adding further to the memo Limp mentioned, "It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result.”
Limp said the company notified impacted employees and will continue to work closely with each individual to provide support, including assisting in finding new roles.
The reports published in the notable, The New York Times earlier this week showed, that Amazon was planning to lay off approximately 10,000 employees in its corporate and technology roles, adding that the cut is going to be the biggest in the company’s history.
Amazon's spokesperson Kelly Nantel said as part of the annual operating planning review process, certain roles are no longer necessary.
Among other tech majors, Facebook’s parent company Meta and Twitter soon after Musk’s takeover are also in the light with their massive mass layoffs around the globe that have made a cut into the headlines steering a widespread uproar and breakdown.
Beginning with Meta, the company announced laying off 11,000 employees from its strong workforce. The announcement came from the company’s CEO Mark Zuckerberg after the share price of the company saw a 70 percent drop.
A drop reportedly is expected to have come in the backdrop of the Metaverse announcement and shot up the anxiety among investors regarding the future of Meta’s social media business core.
In a long blog post, Zuckerberg took accountability for the Meta Layoffs and stated that due to overstaffing and cost cuts, he would now be working towards laying off employees. The Meta layoffs have been reported to be the worst tech layoffs so far.
However, reports have directed that the layoff in the company will largely position Meta India to be in a much safer spot than the rest of the countries where Meta is operating as of now.
Cut to the micro-blogging site Twitter which saw a massive layoff soon after Elon Musk took over which included the top leadership termination that involves Indian Parag Agrawal.
In percentage-wise Twitter was the worst affected seeing half of its workforce being laid off which accounts for nearly about 3700 people worldwide leaving just a near about a dozen employees based in India when detailed about the reason that followed Musk informed the world about the company's move through a tweet, "Unfortunately there is no choice when the company is losing over $4M/day."
Tesla’s boss added through the tweet about the layoff, adding that everyone affected was offered three months of severance pay. None of us know the magnitude of this beginning of the layoff in the backdrop of the recession which is expected to take a grip over the economies around the globe beginning with the US.