The global tech industry is going through a tough times and all it seems will continue in 2023 as more companies yet to announce job cuts. Andy Jassy, CEO has been carrying out cost-cutting measures across the company battles economic downturn and slow growth.
When the going gets tough and the tough get going. It is well applicable for Amazon ,as it has began laying off some more employees in its cloud computing and human resources departments. The company’s web services (AWS) chief executive officer (CEO) Adam Selipsky in a memo to the employees called it a tough day across the organisation.
While Enterprises are struggling to get their cloud services costs under control. There is sudden hike of 20% by most of the hyperscale’s including AWS, Azure and Google . Expert says, the sudden price hike credits to, how geopolitics is reshaping the economics of computing, and what solutions are possible. Expert predicts that, if the hyperscale’s would have considered not to increase the price structure, that the existing companies could have continued their services with the cloud providers. With this cloud repatriation is happening at faster speed.
Recently, Andy Jassy shared his vision for the company with its shareholders in a letter. In the letter, he discussed the various cost-cutting measures that the company has taken, including the ‘difficult decision of eliminating 27,000 positions’. Jassy stated that this decision was made as part of an effort to reprioritize where the company spent its resources.
Amazon took the world by surprise when it announced large-scale layoffs last year. The company decided to let go of 18,000 employees in 2022, and more recently, it announced showing the exit door to 9,000 more employees. While the first round of layoffs at Amazon impacted people from retail, devices, recruiting and human resources departments, the fresh round of layoffs was said to impact people from the ads business, cloud computing, Twitch livestreaming and HR teams. According to a CNBC report, Amazon has now started laying off employees from its advertising team and announced the same in an internal memo.
The online B2B marketplace supplied products to kiranas and small retailers, and this is estimated to grow to a $90 Bn-$100 Bn opportunity by 2030. All it seems India become the battel field for the Global vs. Indian companies.
The parent company of Amazon Web Services, Inc. (AWS) is Amazon. Amazon has been dogged by stiff competition from Reliance in India. Reliance beat Amazon by acquiring German wholesaler Metro Cash & Carry’s India business in a deal reported to be worth INR 4,000 Cr – INR 4,500 Cr. Interestingly, this came soon before Amazon shut down the Amazon Distribution business which would have potentially utilised Metro’s wholesale network in India.
In a USD 900 billion Indian retail industry with 1.3 billion consumers, There is a growing competition among Reliance and Amazon, it clearly witness, Reliance can offer lower prices for products because of their lower operating costs, but Amazon does have better customer service and better return policies (though they are not as profitable).
Amazon wants to use technology and automation to make shopping easier and more convenient for customers. Whereas, the strategy of Reliance to leverage its strengths in retailing, the company now aims to become the world’s most admired retail company.
Amazon Web Services( AWS) the most dominant public cloud platform in the world. AWS generates most of the company’s profits but is experiencing slowing growth as corporate customers look to trim expenses.
In India most organizations may lack IT personnel, while others fear the loss of accessibility. Furthermore, the organizational decision-makers are constrained because of the cost.
Ever since Amazon announced its decision to lay off thousands of employees across the world, LinkedIn has been full of stories of people losing their jobs, looking for opportunities, and trying to connect with each other.
The layoffs come as Amazon Web Services (AWS), the company’s most profitable division, experiences slowing sales growth. According to the notification about the layoffs, job losses at AWS will be spread globally, starting with personnel in the US, Canada, and Costa Rica. Impacted employees were notified of the layoffs early Wednesday by CEO Adam Selipsky and Human Resources Head Beth Galetti.
Due to concerns about a recession, Amazon began cutting costs by freezing hiring, stopping some projects, and slowing warehouse expansion. CEO Andy Jassey in his note last month said that given the uncertain economy and the “uncertainty that exists in the near future,”Amazon has chosen to be more streamlined.
Secondly, Amazon announced another big decision on Wednesday and informed about the closure of its Halo division that sells health and sleep trackers. Amazon has announced that it will stop supporting Halo services from July 31st and will refund Halo device purchases made in the previous 12 months. The company has notified impacted employees in the US and Canada, but the number of affected employees has not been specified.
The Halo division was launched in 2020 with the introduction of the original Halo band, a fitness tracker that provided access to health monitoring and analysis services. The division later released two additional products, Halo View and Halo Rise, a contactless sleep tracker and a smart alarm clock, respectively.
The online commerce giant has shown that even its most profitable businesses are immune to cost-cutting measure. It is another fact that both the sections had witnessed slow growth in recent months.
