Amazon Laying Off Hundreds of Corporate Employees


While hundreds of layoffs for a corporate giant seem relatively common, this move is in fact quite rare for Amazon - a company who, according to the Seattle Times, prides themselves on "frugality, and efficient allocation of resources".

Hundreds of layoffs are modest for a company that is now the second-largest US -based corporate employer, and pales in comparison to adjustments in recent years that saw Microsoft and Boeing eliminate thousands of jobs in a single cutting drive.

Citing several unnamed employees, The Seattle Times reports that the layoffs occurred due to the accelerated growth of the past few years, which resulted in a situation where some teams were over budget. Zappos, a Las Vegas-based online footwear retailer, too had to let go of 30 employees recently. Amazon is still hiring around the world and continues to grow its headcount in general.

Amazon has 3,900 corporate jobs open in Seattle, part of 12,000 such positions open worldwide, according to a person familiar with the matter. In fact, according to Amazon's latest quarterly earnings report, it had grown its global workforce by 66% over the a year ago. It has also been reported by the magazine that Amazon is in the process of searching for a possible location for a second headquarters, where it will be hiring up to 50,000 workers.

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The company on Monday had more than 4,000 job listings posted for Seattle, up 23 percent from the multiyear low in January.

Amazon is automating tasks such as forecasting demand for new products and negotiating their prices, said Michael Lagoni, chief executive officer of Stackline, an e-commerce data analytics firm that helps brands and manufacturers sell on Amazon. "There is so much stress on campus".

With that being said, the company is yet to release an official statement regarding the latest development. "We do not use our performance management process to achieve head-count goals".

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