As online merchants start to see a drop in consumers after the epidemic, Amazon has frozen recruiting for corporate posts in its retail division in an effort to contain expenses.
The New York Times reported that Amazon had told recruiters to delete all open job advertisements for those positions and had advised delaying recruitment operations including phone calls to vet new applicants.
However, a sizable number of unfilled positions exist in the organization’s other areas, according to business spokesperson Brad Glasser.
We have a variety of companies that are all at various phases of development, and we anticipate continually changing our recruiting tactics in each of these businesses at various junctures, according to Glasser.
It happens amid worries about an economic slowdown, which has caused businesses like Google, Apple, and Meta to slow down and, in some instances, temporarily stop recruiting.
Amazon has been cutting down on expenditure under CEO Andy Jassy, who assumed the role a little over a year ago, in an effort to reduce expenses at a time when the firm is seeing its slowest growth in more than 20 years.
Jassy reportedly recently informed investors that the business has concentrated on cost and efficiency management in its warehousing and logistics operations.
Early on in the Covid-19 epidemic, Amazon had a high increase in demand. However, like with other businesses that prospered during the crisis, Amazon has seen declining revenues as consumer behavior has returned to normal levels.
Amazon increased its staff by 50% from 2019 to more than 1.2 million individuals during the epidemic.
This was tempered post-pandemic, however, since the firm has lost roughly 100,000 jobs since the end of March.
Since its pandemic-driven growth left it with too much warehouse space, Amazon has halted or postponed the opening of new facilities, and it is postponing the inauguration of several new structures.
The corporate hiring freeze is the most recent indication that Amazon’s core retail and technology departments are feeling the effects of cost-cutting efforts.
Amazon has held Career Days in September in prior years when it has recruited for tens of thousands of paid employment.
It got over a million employment applications the previous year. But this year, it did not host the event.
However, they are not the only business searching for methods to reduce expenses.
For the first time in the company’s history, Mark Zuckerberg declared a hiring freeze and warned of intentions to “steadily curb personnel growth.”
During a question-and-answer session with staff members last week, the Facebook CEO announced that the business will continue its May hiring freeze.
He promised that cost-cutting measures will be implemented at that meeting.
Zuckerberg’s personal wealth has significantly declined during the last year, falling by about a third.
In addition, Meta will close one of its New York offices as part of a strategy to slow development and decrease expenses by at least 10% in the next months.
The business will terminate its lease on the 200,000 square foot office building at 225 Park Avenue South in Manhattan’s Flatiron neighborhood.
According to Meta Spokesperson Jamila Reeves in an email statement, “Two Twenty-Five Park Avenue South has acted as an excellent bridging location to bring us to our new headquarters at Hudson Yards and Farley.” She also confirmed the company’s intentions to vacate the facility.
Just one week after canceling its next-generation laptop and restructuring 50 staff in response to significant cutbacks to its incubation program, Google will likewise limit hiring and investment.
In addition, the Economic Times reported in August that Apple had fired a large number of its contract recruiters in the previous week as part of an effort to cut down on the tech giant’s recruiting and expenditure.
Data collated by Crunchbase indicates that more than 42,000 people in the US tech industry from Big Tech companies like Microsoft and Meta have been let go in a wave of layoffs.
Uber, Netflix, and various bitcoin exchanges and lending platforms are among the companies that have let off employees.
Apple and Google may have reduced its personnel and stopped recruiting for the first time since the 2008 financial crisis, as major tech companies seem to be preparing for significant headwinds.