Amazon is cutting back hiring targets in its retail business as inflation rises

Leaked emails have revealed that Amazon is scaling back its retail business hiring targets as growth slows and costs rise.

The company‘s worldwide consumer team, which is in control of everything from the ecommerce marketplace to its logistics business, has reduced its hiring target by 1,511 people this year, according to an email viewed by Business Insider.

According to the documents, the number only applies to corporate employees and not the hourly warehouse personnel.

It is currently unclear how large the reduction is when compared to the arm’s total hiring target, however one team within the unit is expected to slash the target by 7%, according to Business Insider.

“We fully understand that this is not ideal and the teams have to make some tough choices to prioritise within the limited resources,” Amazon VP of finance Gokul Dakshina wrote in the email.

“Please adjust your hiring ramp accordingly.”

Dakshina claimed that the reduction plan came after meeting with CEO Andy Jassy and CFO Brian Olsavsky.

He added that he could “request additional investments” from retail chief Dave Clark “when the business accelerates” to reach certain growth targets.

The news comes off the back of Amazon’s disappointing financial results that were published last month, indicating a reduction in consumer demand and profit margins.

Olsavsky also admitted that the company over-expanded during the pandemic, leaving the company with excess capacity across its warehouses and workforce.

“We have too much space right now versus our demand patterns,” Olsavsky said during a call with reporters last month.”

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