Amazon has now moved forward with its global workforce reduction plan – the impact of which is being felt in India – with the layoff of 500 employees across various divisions.
Prior to this, the global e-commerce giant made headlines after its decision to lay off 18,000 employees earlier this year and more recently a subsequent 9,000-employee cut across various divisions globally in March 2023, bringing it to a total of 27,000 layoffs.
These particular cuts are however part of the tech firm's announced 9,000 employee layoffs and is set to affect multiple verticals within Amazon's operations in India, including its cloud division AWS, as well as the People Experience and Technology Solutions (PXT) department responsible for HR and support functions.
The company's CFO Brian Olsavsky attributed these job cuts to the slower growth of AWS as the business customers are anticipating market turbulence and adopting a more cautious approach to spending, resulting in the need for a more streamlined workforce.
It is worth noting that Amazon's e-commerce business in India has experienced a slowdown in growth, dropping from $84 billion in 2021 to an estimated $74.8 billion in 2023 per Statista data, highlighting the challenging market conditions the company currently faces in the country.
The latest retrenchment approach highlights the company's efforts to optimize its operations, adapt to market conditions, and ensure sustainable growth in a competitive industry.