Amazon temporarily stops hiring companies |  Silicon UK Tech News

Amazon temporarily stops hiring companies | Silicon UK Tech News

Weeks after it paused hiring for corporate retail jobs, Amazon extends hiring freeze for roles across the company’s workforce

More bad news on the jobs front after Amazon said it was temporarily halting hiring for roles in the company’s workforce.

The e-commerce and cloud giant has announced a hiring freeze for companies in A Thursday staff note.

This comes after Amazon announced last month that it would do so Hiring freeze for corporate roles in the retail business. This week’s announcement affects other Amazon businesses, such as Amazon Web Services (AWS).

Image credit: Amazon

Hiring Freeze

“With the economy in an uncertain place and in light of the number of people we’ve hired in the past few years, Andy and Team S decided this week to pause new incremental hires into the company’s workforce,” Amazon Senior Vice President of People wrote. Expertise and Technology, Beth Galletti.

“We’ve already done this on a few of our businesses in recent weeks and have added our other businesses to this approach,” Galletti wrote. “We expect to keep this pause in place for the next few months, and we will continue to monitor what we see in the economy and business to adjust as we think makes sense.”

Galletti said that depending on the business or company region, Amazon will hire backfill to replace employees who transition to new opportunities.

I also wrote that there are some targeted places where Amazon will continue to hire people gradually.

We are facing an unusual macroeconomic environment, and we want to balance our employment and investments with thinking about this economy,” Galletti wrote. This is not the first time we have encountered uncertain and challenging economies in our past. While we’ve had several years where we’ve expanded our headcount broadly, there have also been several years where we’ve tightened our belt and become more streamlined in the number of people we’ve added.”

“With fewer people to hire at the moment, this should give each team an opportunity to further prioritize what is most important to customers and the business, and be more productive,” she wrote.

“We still intend to hire a large number of people in 2023, and we remain excited about our significant investments in our large businesses, as well as newer initiatives such as Prime Video, Alexa, Grocery, Kuiper, Zoox and healthcare,” she added.

Cut costs

CEO Andy Gacy cut costs at Amazon by winding down some projects and getting rid of warehouse space, after the company went to Recruitment spree During the Covid-19 pandemic, it also sought Keeping up with the online shopping boom during global lockdowns.

Late last week, Amazon reported mixed results for the third quarter after three-month revenue missed Wall Street expectations.

It reported a drop in third-quarter earnings to $2.9 billion from $4.9 billion in the same quarter last year. However, revenue rose 15 percent to $127.1 billion.

But Amazon expected its revenue for the holiday quarter to be lower than analysts had expected, causing its inventory to fall sharply.

Amazon shares are down more than 45 percent this year.

Cut costs

But by early 2022, e-commerce spending began to slow, and in the first quarter Amazon announced that slower revenue growth rate Since the dotcom bankruptcy in 2001.

It also posted its first quarterly net loss since 2015.

Things didn’t get much better in the second quarter.

in july Amazon recorded its second consecutive quarterly loss After writing off $3.9 billion from its investment in Rivian Automotive.

Amazon Custom Electric Stroller – Rivian

Amazon is clearly dealing with supply chain issues, inflationary pressures, rising fuel prices, and high wages (in order to attract and retain workers).

Amazon recently announced Increases in salaries for front-line employees in Americastarting in October.

Amazon’s move to raise wages for its US workforce comes as it seeks to address high levels of employee turnover.

In fact, the issue of employee turnover is so serious, that a leaked internal memo in July indicates this Amazon could exhaust US labor supply by 2024.

In recent months, Amazon has closed or canceled the launch of new facilities, and it is delaying the opening of some new buildings after its expansion during the pandemic left it plenty of storage space.

It is said that Amazon has closed almost all US call centers in an effort to save real estate.

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