A fresh wave of tech sector layoffs could be about to hit the UK after Amazon said it would increase job cuts to 18,000 as it seeks to slash costs amid worsening global economic conditions.
The Seattle-based e-commerce giant, which has seen its share price fall almost 50% over the past year, said the layoffs would largely impact the firm’s physical stores and human resources wings of the company.
Amazon CEO Andy Jassy told staff he was “deeply aware that these role eliminations are difficult for people, and we don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted.
He added the move was part of efforts aimed at “adjusting where we spend our resources and time, and finding a way to do more for customers at a lower cost.”
An Amazon spokesperson could not confirm the number of job losses that would take place in the UK. The layoffs represent just over 1% of the firm’s 1.5 million-strong workforce, which would amount to around 840 UK layoffs based on its 70,000 UK staff.
It comes just hours after software business Salesforce said it would be firing around 10% of staff and closing a number of offices, with boss Marc Benioff telling employees the company had hired ‘too many people’. The firm employs over 2,500 people in the UK, according to a Companies House filing, with the lion’s share working at the landmark 46-storey skyscraper Salesforce Tower in Bishopsgate.
There were over 150,000 layoffs at tech companies in 2022, according to tracking website layoffs.fyi.
The layoffs come amid the first ever Amazon strike in the UK is set to take place on 25 January in Coventry, with further dates to be announced in the coming weeks.
Hundreds of Amazon workers at the fulfilment centre have voted to walk out in protest at the company’s 50 pence per hour pay offer.
