The Pros and Cons of Downsizing in the Tech Industry


This time of uncertainty, Amazon’s decision to trim its workforce is a sad truth. It is a sad reality that around 18,000 of our beloved colleagues are going to be laid off. Amazon has always considered it our number one priority to do right by our workers. This news can be difficult and unexpected for many affected. The people who have been affected will be deeply appreciated and well-supported by us. People who are affected by the current crisis will get a few months of pay and benefits to aid them in their to transition into their next stage.

1. What number of employees does Inc. lay off? Inc. has announced that it will lay off over 18,000 people in its effort to reduce the workforce reduction. The move is part of an effort to improve management and operations. This move will impact approximately 1.4% of Amazon’s current workforce which is 1.3 million. Amazon isn’t just the one company who has been forced to trim the size of its workforce. In the month of January, the company laid off about 3,000 employees and then in April 2020 it layoff another 7,000 in its retail business. The latest round of layoffs, which may be the worst in the past, has a lot to say about the present state of technology amid the ongoing epidemic.

2. What’s the message to staff regarding the layoffs?

Following the recent report of Salesforce or Amazon’s recent decision to reduce the size of their staff, the note for employees on the cuts is a sign of the economy in the company’s current situation. Numerous businesses have had to take difficult financial decisions in the wake of the current economy’s crisis. A lot of people were stunned and disappointed to hear about the news of reductions in staff. The memo addressed at employees is an attempt to explain and give some perspective to all those affected. It’s vital to realize that the layoffs don’t an assessment of the performance of the employees however, rather a reflection on the current state of the economy.

3. What’s the reason behind the slump in tech industry?

Recent weeks have seen headlines have been filled with accounts of tech giants, such as Salesforce and Amazon making layoffs of employees due to the slowing technological industry. This abrupt shift in the industry has caused many to be skeptical about the reason for this slump. The general consensus is that the current tech sector slump can be traced to many causes, ranging from the global pandemic , to the present economic recession. Numerous companies are forced to review their workforce requirements due to the pandemic. The companies are also seeking at ways to reduce costs as a result of the downturn in the economy. The result has been the sacking of many tech firms.

4. What was the process that helped Inc. achieve its annual goals? Inc. announced plans to remove more than 18,000 of its employees in their annual plans. This is 3.5 percent of Amazon’s employees across the globe. The COVID-19 outbreak has resulted in significant economic harm to a variety of businesses and has led to a decline in the sales of specific products and services. All business units will be affected by reduction in jobs, including Amazon Web Services (Amazon’s cloud computing business) as well as physical retail stores. A majority of the cuts are expected to be within the US as well as Europe although Amazon is also reducing the number of employees in other nations.

5. Inc. has taken the appropriate measures? Inc. has taken a number of initiatives to shrink its workforce by more than 18,000 employees in the course of its recent technological employee purge. Amazon is working to save money and revamp itself in order to remain at the top of the marketplace. The company introduced a voluntary plan for early retirement which will allow eligible employees to receive a severance payment and also a cut in personnel, which could lead to job losses. Furthermore, the firm is also implementing the hiring freeze, which prohibits any new positions from creating new positions, as well as a restricted hiring freeze, which allows for only some hiring. Furthermore, Inc.

A Brief Summary

Tech industry job losses by 2020 will be a reminder how even large companies can be affected by recession in the economy. In the past, businesses like Amazon are being forced downsizing their workforce in order in order to withstand the current economic climate and maintain their financial viability. But, technology giants such as Amazon have demonstrated resilience and adaptability for the sake of thriving even in an uncertain business landscape. This can be an example for other companies that are trying to cope with the next storm.