The government says Amazon’s layoffs are not a “Major Concern” to Ireland
By The Headlines, January 6, 2023 | 11:27 PM
In a public staff note, Amazon's CEO said that layoffs would now increase to more than 18,000 roles as part of a workforce reduction.
Amazon has announced the planned cuts of 6% for their corporate workforce, and these cuts are a swift turn for a corporation that recently doubled its base pay ceiling in an attempt to compete more aggressively for talent.
Amazon is currently America's second-largest private employer. As with Walmart, they have warehouse staff as well as many other kinds of workers, ranging from cashiers to members of Amazon staff.
The stock price rose following the day's ending trading session.
Minister Coveney has said Ireland is not immune to some lasting effects on the workforce after Amazon announced it would be reducing its headcount worldwide.
Why is Amazon laying off?
Amazon is laying off 18,000 employees. The massive layoff follows the trend of tech companies who have all cut thousands of workers in the last year. The layoff will mainly be borne by corporate workers and will not affect the warehouse employees.
The tech giant said they will be re-evaluating its shift this week to Ireland and that it is still not definite the country will be a major target of these announced job cuts. Amazon has 5,000+ employees in Ireland and just opened a new warehouse.
What did the Government say regarding the Amazon layoffs?
Minister Coveney said "We will continue to talk to the company. The indications are that the kinds of jobs Amazon have in Ireland are less likely to be impacted than in some other parts of the world, but that's not to say there won't be any impact in Ireland, I think there will be some, but we'll have to wait to see the detail of that later on in January,"
The retail giant is expected to inform impacted staff on January 18
The Minister for Foreign Affairs, Simon Coveney, said more jobs were being created in Ireland than were being lost. They'll stay in close contact with Amazon over the next ten days or so to do everything they can to protect Irish jobs.
Tech jobs in Ireland grew by 10% last year and there are still more tech jobs being created than lost.
"But that does not mean we shouldn't speak to companies that have announced global changes. We need to understand those intentions and make sure Ireland remains competitive," he added."
How will the layoff affect Amazon?
Mr Jassy's note says that the cyclical nature of the economy reduces annual planning tasks, and they've hired rapidly at a high pace for the past several years.
Amazon has already seen slower growth because of rising inflation and its share price is crashing. Businesses and consumers are cutting back on spending to keep the cost of living affordable when they're feeling like there are few ways left to save money or manage their daily lives.
Amazon, once a promising company, has seen significant changes in its business. One of the recent shifts in how they deliver goods to people during pandemics and other natural disasters. Amazon now needs to be re-evaluated as the company could have offered little or poor service when those most needed.
150,000 tech industry workers were cut in 2022 according to a number of online projects. The cuts are continuing and this number is also continuing to grow.
Salesforce announced yesterday that it plans to cut just over 10% of its employees, about 8,200 of which were in place as of the end of October.
The report in the Wall Street Journal that Amazon employees are losing their jobs was surprising to many. Though Amazon decided to inform the public before talking to their staff, they were still leaked.
Amazon is still filing legal notices to pay severance when they have mass layoffs and this is part of the reason why they are behind on a lot of projects.
Mr Jassy of Amazon said, "That the company has proven itself in times of uncertain and difficult economies."
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