Amazon Kicks Off Round of Job Cuts Affecting 18,000 People Inc.  has started its biggest-ever round of jobs cuts  — a culling that will ultimately affect 18,000 workers around the globe.

| Updated on: Jan 19 2023, 07:30 IST
Netflix, Hulu, HBO Max, Amazon Prime, YouTube killing off the music streaming business
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1/6 Published in INFORMS journal, 'Marketing Science', research revealed that the consumption of audio music streaming was significantly reduced due to people being locked inside their homes. (Unsplash)
2/6 People have instead turned to video platforms such as Netflix, Hulu, HBO Max and Amazon Prime as a means of keeping them entertained and engaged. (Unsplash)
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3/6 According to Jaeung Sim of Korea Advanced Institute of Science and Technology (KAIST), "On average, audio music consumption decreased by more than 12% after the World Health Organization (WHO) pandemic declaration on March 11, 2020. As a result, during the pandemic, Spotify lost $838 million of revenue in the first three quarters of 2020, our results show that human mobility plays a much larger role in the audio consumption of music than previously thought." (Unsplash)
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4/6 The study was conducted by Sim alongside Daegon Cho also of KAIST, and called ‘Virus Shook the Streaming Star: Estimating the COVID-19 Impact on Music Consumption’. It determined the nature of changes by looking at the streaming data for top songs for two years in 60 countries, as well as COVID-19 case and lockdown statistics and daily mobility data in those areas. (Unsplash)
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5/6 Telang of Heinz College at CMU said "Despite the common expectation that the pandemic would universally benefit online media platforms, we found that it adversely impacted music streaming services, our findings imply that the substantially changing media consumption environment can put streaming music in a fiercer competition against other media forms that offer more dynamic and vivid experiences to consumers." (Unsplash)
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6/6 The study revealed that the consumption of music had a direct correlation with lockdown restrictions associated with COVID-19 and the time spent at home. (Unsplash)
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Amazon layoffs to impact as many as 18,000 employees. (Bloomberg) Inc. has started its biggest-ever round of jobs cuts — a culling that will ultimately affect 18,000 workers around the globe.

Amazon began notifying employees by email early Wednesday, Doug Herrington, the company's worldwide retail chief, said in a memo. He said the company aimed to communicate with all laid-off workers in the US, Canada and Costa Rica by the end of the day. Notifications in China will be sent after the Chinese New Year, and in other regions the company must consult with employee representatives before finalizing layoffs.

The world's largest e-commerce company is grappling with slowing online sales growth and bracing for a possible recession that could affect the spending power of its customers. Microsoft Corp. announced it was cutting 10,000 jobs Wednesday, becoming the latest in a long line of tech companies to trim its ranks.

Herrington said Amazon's cuts were part of an effort to lower costs “so we can continue investing in the wide selection, low prices and fast shipping that our customers love.” He said the company would “continue investing meaningfully” in growth areas including groceries, Amazon's business-to-business sales program, services for third-party sellers and healthcare.

The eliminations started last year and initially fell hardest on Amazon's Devices and Services group, which builds the Alexa digital assistant and Echo smart speakers. The latest round will mostly affect the retail division and human resources.

While the cuts represent only about 1% of the total workforce, which includes hundreds of thousands of hourly warehouse and delivery personnel, they amount to about 6% of Amazon's 350,000 corporate employees around the globe.

Amazon shares rose about 1% to $97.14 at 11:14 a.m. in New York.

The Seattle-based company spent much of last year adjusting to a sharp slowdown in e-commerce growth as shoppers returned to pre-pandemic habits. Amazon delayed warehouse openings and halted hiring in its retail group. It broadened the freeze to the company's corporate staff and then began making cuts.

Amazon is among several large tech companies that are trimming their ranks, including Cisco Systems Inc., Intel Corp., Meta Platforms Inc., Qualcomm Inc. and Salesforce Inc.

In his memo, Herrington said the Seattle-based company would provide severance, transitional health benefits and job placement to affected workers.

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First Published Date: 19 Jan, 07:30 IST