Just before Thanksgiving Day, one of the most important holidays in the United States, Amazon CEO Andy Jassy confirmed rumors that several layoffs would begin in various departments of the e-commerce giant and said he would review needs of staff in the new year.
Last week, Jassy provided a sobering update on that measure: Amazon is cutting more than 18,000 jobs, nearly double the 10,000 previously reported and marking the most layoffs of any tech company in the recent American recession.
At Amazon and other tech companies, the second half of last year was marked by hiring freezes, layoffs and other cost-cutting measures at several well-known names in Silicon Valley. If 2022 was the year the good times ended for these companies, 2023 could be the year people start expecting the worst.
On the same day that Amazon announced layoffs, computer company Salesforce said it was laying off about 10% of its staff, a number that easily reaches thousands of workers, and video-sharing channel Vimeo said it was cutting 11 % of its workforce. The following day, digital fashion platform Stitch Fix said it planned to cut 20% of its salaried staff, having already cut 15% last year.
The ongoing industry fallout comes as tech companies grapple with a storm of factors. After initially seeing a boom in demand for digital services amid the onset of the pandemic, many companies hired aggressively. Then, after virus restrictions eased, people returned to their offline lives. Rising interest rates also took away the easy money that tech companies used to fuel big bets on future innovations.
This article used as a source the writing by Catherine Thorbecke to the website CNN Business.
Want to know more about the news? Don’t forget to follow ADNEWS on social networks and stay on top of everything!
The post Silicon Valley layoffs go from bad to worse appeared first on ADNEWS.
