A lot of tech companies have been firing a huge number of employees to save costs as they fear an economic recession. Several tech companies are reportedly witnessing losses in revenue. Companies like Meta, which announced the layoff of 11,000, stated that reduced spending by advertisers has been one of the reasons why the tech giant has been experiencing loss in revenue. Both Google and Amazon are expected to sack thousands of employees very soon. Here is everything you need to know.
Mass layoffs at Google and Amazon expected very soon
-Unlike some of the major tech companies, Amazon has officially announced the layoff of employees. While the company didn’t reveal the exact number of employees that will be laid off, the reports have so far hinted that Amazon plans to sack as many as 20,000. In November, it was reported that 10,000 people will get fired, but the number has reportedly been increased by a big margin.
– Amazon’s CEO recently announced that the process of layoff would continue for a few months and that the impacted employees will be informed once the company assesses everything. So, the number of reductions might have been increased as it is rigorously reviewing all the departments across the regions to save costs.
-Amazon recently said that it will reduce headcounts gradually and not at once. It confirmed that the process will continue until early 2023 and layoffs will be done because of the unusual and uncertain macroeconomic environment.
-To cut expenses, Amazon is taking other measures as well. It is reportedly planning to delay the projects that are currently in beta testing, and it will shut down its Amazon Academy learning platform in India too, but this will reportedly take time.
– The e-commerce giant also asked people to voluntarily resign with monetary benefits, and the deadline for this was November 30. Those who resigned voluntarily were promised up to 22 weeks of Base Pay, one-week base salary for every six months of service (rounded to the nearest 6 months), up to a maximum benefit of twenty weeks paid severance. In addition to this, the employees are also entitled to get medical Insurance coverage for 6 months as per an Insurance Benefit policy or an equivalent insurance premium amount in lieu. However, those who are in performance improvement programs (PIP) won’t be able to sign up for VSP.
-But, Amazon has completely paused hiring as it was recently discovered that it would add more staff to the company’s Amazon Web Services (AWS) business. The company’s Cloud unit is reportedly pretty profitable and is also experiencing rapid growth.
-Google is also said to fire as many as 10,000 employees, which is about 6 percent of the company’s workforce. The search giant has reportedly asked the managers to assess the performance of the employees, so that it can remove the ones who have performed poorly.
-It seems pretty unbelievable that the company has suddenly decided to cut thousands of jobs on the basis performance. Google has a ranking system and it is being said that the ones are who are at the lowest ranks will be most impacted. It is said to sack employees in early 2023.
-Google is likely reducing headcounts to save costs because the company recently announced that it will be slowing down the hiring process in the fourth quarter of the year. If Google is removing people in the name of performance, then it means that it won’t likely provide monetary benefits to the affected employees, which is something that a lot of tech companies are giving as part of compensation because of their job loss.
