Amazon is to fire employees after Meta (Facebook’s parent company) and Twitter(Owned by Elon Musk) last week. Why lay off employees significantly?
According to a Monday New York Times article, Amazon plans to dismiss up to 10,000 employees worldwide in “business and technology.” This follows a surge of reductions and hiring freezes in the technology sector, most famously at Meta, which sacked over 11,000 employees last week.
The global recovery from the Covid-19 epidemic is the primary cause of the decline in demand. The lockdowns brought on by the epidemic pushed people indoors, leading them to make more online purchases, spend more time on social media, view more streaming content, and play more games online.
This started showing in the numbers of tech companies that were riding a boom for the past few years and hired to sustain the increased demand. Now going to balance the bench and overhead count in the organization. All tech Companies (mainly service-based organizations maintain their bench for the predictive business forecast. and on regular intervals to balance the overhead cost to maintain the budgets.