Amazon to Cut 5 Percent of Corporate Workforce

In a blog post on January 4, Amazon CEO Andy Jassy issued a Layoff Update on Roll Eliminations. 

Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles. Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organizations.

We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted. However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me. 

In November, Amazon announced 10,000 layoffs. The new announcement ups the total to 18,000. 

The Wall Street Journal reports the layoffs are concentrated in the company’s corporate ranks and represent roughly 5% of that element of its workforce, and 1.2% of its overall tally of 1.5 million employees as of September.

Salesforce to Lay Off 10% of Workforce, Reduce Offices

Also note Salesforce to Lay Off 10% of Workforce, Reduce Offices

Salesforce Inc. is laying off 10% of its workforce and reducing its office space in certain markets, extending a brutal period for tech job cuts into the new year.

Salesforce Co-Chief Executive Marc Benioff said that the cuts come as many of the company’s customers are taking a more cautious approach to spending, a trend that a growing number of software companies said they have been facing lately.

“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Mr. Benioff said in a letter to employees.

Mr. Benioff, who also serves as chairman of the company, said the business-software provider hired too many people as revenue surged earlier in the Covid-19 pandemic. “I take responsibility for that,” he said.

Vimeo Layoffs Impacting 11 Percent of Employees

TechCrunch reports Vimeo enters 2023 with a round of layoffs impacting 11% of employees

Vimeo rings in the new year with another round of layoffs, affecting 11% of its workforce. In an email to staff today, CEO Anjali Sud cited an “uncertain economic environment” as the reason for the reduction.

This isn’t the first round of layoffs for the video hosting platform, which cut 6% of its staff in July 2022. Since the July layoffs, Vimeo has seen a “further deterioration in economic conditions, in the form of prolonged geopolitical conflict, rising interest rates, and global recession fears,” Sud said. In November, the company reported its third-quarter earnings, showing a loss of about 100,000 subscribers from the previous quarter and an operating loss of $22.9 million.

Strong Jobs?

Please consider my December 2, 2022 post Another Strong Jobs Report? Phooey, and I Can Prove It

Payrolls vs Employment Since March 2022

• Nonfarm Payrolls: +2,692,000
• Employment Level: +12,000
• Full Time Employment: -398,000

Millions are retiring but millions of others are taking second part time jobs to make ends meet. So yes, we can be adding part time jobs while employment is stagnant.

The Fed picked up on this, at least enough to mention. But I have been commenting along these lines for months.

Fed is Concerned 

Meanwhile FOMC Minutes Show Concern That Markets Do Not Believe the Fed's Resolve

The Fed is concerned over wage growth and persistent inflation more so than recession, stretched budgets, and the fact that housing and manufacturing that have both collapsed.

Not to worry, the Fed and Treasury Secretary Janet Yellen still believe in a soft landing. 

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