Amazon has announced that it will be cutting more than 18,000 jobs, a larger number than previously reported.
This news follows Salesforce's announcement that it will also be reducing its headcount by 10%, affecting over 7,000 employees. Both companies have stated that they hired too rapidly during the COVID-19 pandemic.
Amazon specifically mentioned that it had added too many workers in its warehouses due to the increase in online ordering. The company currently employs 1.54 million people.
Most of the job cuts at Amazon will come from its stores and People, Experience, and Technology groups. The company will begin informing employees who will lose their jobs on January 18th.
CEO Andy Jassy stated in a memo to employees that these changes will allow the company to pursue long-term opportunities with a stronger cost structure. Still, he is also optimistic that the company will be able to remain resourceful during this time of reduced hiring and job eliminations.
Meanwhile, Amazon has been massively recruiting for several technology roles in South Africa, amid a global wave of layoffs and a hiring freeze, according to an earlier Techloy report.