Amazon released a memo on Thursday stating that they are freezing the hiring of its corporate workforce. Previously, the e-commerce giant announced to hiring for corporate roles in its retail business.
Extended hiring freeze
Some of the largest tech firms in United States are reshaping its workforce in wake on rising economic uncertainty. The demand for online shopping multiplied massively during the COVID-19 period. Therefore, Amazon went on a hiring spree during that time. However, with consumers moving back to physical stores Amazon’s headcount growth is slowing down. Unsurprisingly, Amazon has expanded their hiring pause to its other businesses after they imposed a hiring freeze in their retail business. Moreover, Amazon’s HR chief Beth Galetti issued a memo yesterday confirming the hiring pause. The memo stated that company moved to further restrict new hiring amid a worsening economic outlook. Additionally, she stated that Amazon will backfill roles to replace employees who leave for new opportunities.
“We had already done so in a few of our businesses in recent weeks and have added our other businesses to this approach. We anticipate keeping this pause in place for the next few months, and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense. Amazon will continue to hire backfills for some employees who leave for new opportunities and there are some targeted places where we will continue to hire people incrementally.” Beth Galetti wrote in her memo.
Efforts to curtail costs amid economic uncertainty
The e-commerce giant Amazon has corporate facilities in Virginia, Tennessee, Silicon Valley and New York. Moreover, there are about 75,000 employees at its corporate offices in Seattle. In the third quarter, Amazon’s headcount grew just 5% year over year. However, the company top management is very keen to curtail its expenses amid fears of a recession, rising inflation and soaring interest rates.
Recently, many large tech companies including Alphabet, Meta, Netflix, Twitter have announced plans to slow down their hiring.
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