(CTN News) – According to a memo sent to employees on Wednesday, Amazon has halted hiring for new positions in its corporate workforce for “the next few months” in response to the uncertain economic climate.
According to the New York Times, the news follows the company’s announcement last month that it would freeze corporate hiring in its retail business for the remainder of the year.
According to the company, the hiring pause was also necessary because of the number of employees it has hired over the past few years.
The memo states: “Given how many people we have hired over the past several years, leadership decided this week to pause incremental hiring in our corporate workforce,” Beth Galetti, Amazon’s senior vice president of people experience and technology, stated in the memo.
During the next few months, the team will continue to freeze salaries and adjust accordingly based on the state of the economy and business, according to Galetti.
In certain areas of the company, we will hire backfills to replace employees who move on to new opportunities, Galetti added, adding that Amazon would continue to hire “incrementally”.
As companies focused on growth over the past year, Big Tech embarked on a hiring spree, but now they are facing belt tightening, reports Axios’ Ina Fried.
Among these companies is Amazon, which had 1,544,000 employees at the end of last quarter. This was an increase of 5% over the 1,468,000 it had at the end of last year.
It is possible that people are spending more time and money outside their homes as a result of slowed revenue growth on Amazon Web Services last quarter. This contributed to the decline in Amazon shares last week.
Axios’ Hope King reports that other companies in the Big Tech sector, including Meta, Alphabet’s parent company, and Microsoft’s cloud competitor, have also reported weaker results than expected.
These companies also terminated leases, froze hiring, and laid off workers.
Who is the main boss of Amazon?
In 2020 during the COVID-19 pandemic, his wealth grew by approximately $24 billion. On July 5, 2021, Bezos stepped down as the CEO and President of Amazon and transferred to the role of executive chairman; Andy Jassy, the chief of Amazon’s cloud computing division, replaced Bezos as the CEO and President of Amazon.