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Home > News > Market Flash > E -commerce giant Amazon will lay off 18,000 people

E -commerce giant Amazon will lay off 18,000 people

ECHEMI 2023-01-10

A economic recession is approaching quickly

According to Bloomberg, Amazon, an e -commerce company, decided to lay off more than 18,000 people, and reported that the number was more than before. According to the data, as of the end of September last year, Amazon had more than 1.5 million employees, which means that the latest layoffs will account for about 1%of the total number of employees.

The news has been confirmed by Amazon CEO.

It is reported that Amazon CEO Andy Jassy announced the decision in a memorandum to employees on the 4th, saying that it followed the company's annual planning process. It is understood that layoffs are mainly concentrated in the company's enterprise level, including retail sector (including its core e -commerce business) and human resources recruitment departments.

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Andy Jose said that the detailed layoff information will be announced on January 18, which will largely affect the company's e -commerce business and human resources organization. Andy Jose said that in view of the uncertainty of the economy and large -scale recruitment in the past few years, the annual planning has become more difficult.

The Wall Street Journal believes that this is the latest sign of the decline in the development of this technology company. The New York Times analyzed that when the demand began to weaken and the customer turned back to shopping offline, Amazon launched a large -scale cost reduction review to reduce the business scale of unprofitable.

Since the beginning of this year, Amazon's performance has been mediocre, and e -commerce business has fallen seriously. According to the third quarter of the 2022 financial report released by Amazon, in the third quarter of this year, Amazon's net sales were US $ 127.101 billion, and its net profit was US $ 2.872 billion, a decrease of 9%compared with the same period last year.

In May this year, it was reported that the Amazon brand plan was cold, and it was said to have been "abandoned" by Lady Gaga's makeup brand. It is reported that HAUS Laboratories, a beauty brand launched by Lady Gaga, has been selling exclusively through Amazon, but has always had poor performance. According to foreign media reports, HAUS Laboratories will be re -launched in Sephora and no longer sell them on Amazon.

Analysis pointed out that the failure of HAUS Laboratories once again shows Amazon's limitations. Amazon does not allow brand communication values and views. This is a fatal disadvantage for the brand that is trying to distinguish between commodities. On Amazon, the celebrity effect is not significant. There are too many products in Amazon, too many brands, and traditional brand cultural construction cannot stand out.

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Chinese sellers on Amazon

The New York Times has reported that an important factor in Amazon's success is the surge in merchants selling products in China's huge digital malls. In the past three years, the number of Chinese brand sellers on Amazon has increased by nearly three times, and its turnover has achieved double -digit growth in 2022.

According to Amazon's latest data, this year Chinese sellers sold billions of products to global consumers through the company's 18 overseas markets. The growth of double digits.

However, in the first half of 2022, Chinese sellers seemed to be withdrawn from Amazon, perhaps because of the closure.

Since May 2021, Amazon has been crazy about sellers. The official claims that 600 brands and more than 3,000 Chinese sellers have been blocked, and the direct and indirect economic losses have exceeded $ 2 billion. By 2022, the title of Yu Bo was still there. At the global strategic conference of 2022, Amazon re -referred to the "seal shop" and stated that the relevant compliance management of Chinese sellers would not stop.

In other words, Amazon's "title" for Chinese sellers will continue.

At present, a large number of Amazon merchants are returning to domestic cross -border e -commerce platforms such as AliExpress and Tiktok Shop, coupled with the boom of self -built independent stations, the cross -border e -commerce industry has accelerated shuffling.

 

 

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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