Amazon.com, Inc. (NASDAQ:AMZN) has announced it will cut jobs at its corporate office as it makes adjustments in its core consumer retail business. Certain sources have revealed that as part of Amazon layoffs in 2018, several hundred employees will be laid off at its Seattle offices and some hundreds at other global workplaces.
The layoffs in the e-commerce company are expected to be completed within the next few weeks. About 500 employees will be affected and some have been already informed about the layoffs. As per the sources, the impacted employees will be offered other positions in the company.
“As part of our annual planning process, we are making headcount adjustments across the company — small reductions in a couple of places and aggressive hiring in many others,” the company said in a statement. “For affected employees, we work to find roles in the areas where we are hiring.”
Although job cuts are rare for employers like Amazon, certain sources have revealed that the company has huge hiring plans in the corporate sector. It has around 4,000 open positions in Seattle and approximately 12,000 positions globally.
Amazon is one of the largest U.S. corporate employers, with a global headcount of 566,000 as of December 2017. Of those, roughly 300,000 are U.S.-based employees. The company has plans to hire 50,000 more people once it establishes its second headquarters; it is still searching for the perfect location.
Amazon’s Hiring Declined by About 60% in Seattle Office
Amazon’s hiring declined at its Seattle office. There were 9,000 open positions available in June. That number dropped to just 3,503 jobs at the start of December—the lowest in three years. Even the data compiled by The Conference Board for the state of Washington pointed toward the fewest number of jobs in King County between August and November compared to the past data of any four-month period since June 2015.
Some of the sources said that because the company is seeking space to expand outside Seattle, it’s slowing down the hiring process. It received 238 bids from municipalities for its second headquarters and is currently in the evaluation process, trying to select the best location. Amazon has indicated that hiring for the new headquarters could begin from 2019.
Amazon spokesperson Teal Pennebaker said in an emailed statement that the company constantly evaluates hiring needs to dedicate resources efficiently and effectively, adding that fluctuations in headcount are common as the company grows across the business at different rates.
The Amazon layoffs in 2018 are part of its business adjustments. The excessive hiring and rapid growth in the last two years resulted in the saturation of operations with too many employees. Now it is costing people their jobs.
“Amazon confirms job cuts at Seattle headquarters, hundreds of positions impacted,” GeekWire, February 12, 2018.
“Amazon laying off corporate employees in rare cutback,” The Seattle Times, February 12, 2018.
“Amazon makes rare round of layoffs at Seattle headquarters,” USA Today, February 12, 2018.
“Amazon’s Seattle hiring frenzy slows sharply; what’s going on?,” The Seattle Times, December 11, 2017.
“Amazon’s hiring in Seattle declines by 60%,” Retail Dive, December 13, 2017.