Within this past week, Amazon has announced that it will be cutting a total of 16,000 corporate jobs. This marks the second largest reduction since October, when 14,000 employees were laid off. This brings their total number of cuts to roughly 30,000 since last year. The purpose of these cuts is intended to strengthen the company by reducing layers, increasing ownership, and removing bureaucracy. According to NBC, Amazon’s senior vice president of people experience and technology, Beth Galetti, said in the announcement that affected U.S. employees will have 90 days to seek other internal positions, with additional support measures offered. She also said that Amazon will continue hiring and investing in strategic areas within the company.
Amazon is known as a leading, rapidly growing brand worldwide. Many people become aware when they make major changes. When there is a large number of employees laid off from their jobs relatively quickly, it is going to get noticed and will gain attention from the media, other corporations and the public eye as a whole.
This attention could lead to negative perceptions of Amazon, both internally and externally. When a company’s reputation is jeopardized, this can affect their long-term hiring, as well as their future sales and the way they are talked about among the general public.
Galetti’s statement emphasized the improvements and new hires that will be made to better the company, while also addressing the support put in place for those laid off. Although Amazon is trying to showcase that they care about those affiliated with the company, the messaging can sound insensitive. Credibility is important, so communicating with language that aligns with their strategy and keeping their audience in mind will make a difference.
As for the future of the company, this will blow over. Amazon has a total of 1.55 million employees, so this will not affect everybody. However, there will be change internally within the company. It is important for Amazon to continue to strengthen their trust with their workers. I do believe, though, that Amazon will still be recognized as dominant, but this situation makes it evident that the brand is going through a substantial organizational change.
