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Amazon India, the biggest e-commerce company, recently revealed that it will be cutting expenses by firing employees globally, but it also stated that it will do it gradually rather than all at once. It is announced that Bezos might fire more employees working at Amazon until 2023.
Amazon India layoffs are worrying employees ever since the company announced layoffs. It is predicted that a total of 10,000 employees will be let go by Amazon Inc. globally, with the majority of the layoffs occurring in the corporate departments. This news has reached The Labour Ministry, which is currently awaiting to conduct an investigation into the mass dismissals and resignations at Amazon India to determine whether the Indian division broke any labour rules.
Amazon reply to the summon by Labour Ministry – Amazon India has responded to the Union Labour Ministry's summons. Amazon has replied to the alleged labour law violations caused by the mass layoffs and has reaffirmed that it did not fire any employees. It was also stated that employees at Amazon who were laid off chose to voluntarily quit their positions by signing up for its separation program after collecting the severance compensation.
Despite India having the fastest-growing e-commerce market in the world, Amazon was forced to discontinue its meal delivery services due to competition from local companies like Reliance Industries, TATA Group, and Flipkart.
In addition to discontinuing Amazon Food, the tech giant is also apparently ending door-to-door delivery of packaged items to small businesses and closing all beta testing services. Hundreds of jobs are anticipated to be lost as a result of this shutdown, which is anticipated to start in December 2022.
It is said that the company's yearly evaluation was challenging, which resulted in the announcement of job layoffs and company hiring had increased significantly in recent years. Amazon has grown its employees from 7,98,000 to 1.6 million during the past two years, a doubling. Adding to it the fact that the economy is still in a precarious position, it becomes clear why Amazon chose to lay off workers.
According to the CEO of Amazon, the organization's annual planning process continues into the following year, which indicates that as managers continue to make adjustments, there will be additional role reductions, CEO indicated that such decisions will be communicated to impacted personnel and organizations which implies that Bezos might fire more employees working in Amazon until 2023.
Although no exact number of layoffs in India has been reported, according to a story by The Economic Times, Amazon may terminate hundreds of employees in the future as well and the backend teams, retail operations, and shared services are the areas that could experience layoffs in India.
The company stated that it is making an effort to assist employees in finding new opportunities on teams that could have openings. However, it is asking staff to voluntarily go by enrolling in the Voluntary Separation Program (VSP), which will provide them with several advantages. Employees who voluntarily leave their positions will receive up to twenty weeks of paid severance in addition to up to 22 weeks of base pay for every six months of service (rounded to the nearest six months). Additionally, according to an Insurance Benefit policy, employees are also entitled to medical insurance coverage for six months.
Those who are willing to accept this will be given the option to accept a package that includes a separation payment, temporary health insurance benefits, and assistance with finding a position outside the company.
Conclusion – Amazon's layoffs have so far had a significant global impact. The business recently reiterated that the job layoffs will start shortly and might go until 2023. Although the precise number of layoffs has not yet been determined, some media reports have suggested that Amazon may fire up to 10,000 workers.
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