Amazon Layoffs: Amazon spent $640 million on layoffs, affected people will get severance package
highlights
Recently Amazon has laid off 18 thousand employees.
In India, the company laid off about one percent of its employees.
About $640 million spent on severance packages
New Delhi. Layoffs are going on in companies all over the world. Most of the companies are also giving Severance Package to the affected employees. Recently, the world’s leading e-commerce company Amazon had announced the layoff of more than 18 thousand employees. The company had decided to lay off due to the challenging macro-economic environment. However, due to this, the company had to spend about $ 640 million on severance packages in the December quarter.
According to the company’s CFO Brian Olavsky, a provision of $ 64 million (Rs 5264 crore) was made in the December 2022 quarter itself regarding layoffs. However, it also covered the severance package etc. of the retrenchment in the next month in January.
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About 6 percent of the employees were retrenched
Last month, Amazon announced layoffs of more than 18,000 employees, which was about 6 percent of its workforce. The biggest impact of this decision of retrenchment was on its stores and device business. Apart from this, the HR team was also retrenched. In India, the company laid off about one percent of its employees.
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Apart from the retrenchment, in November 2022 last year, the company had offered voluntary separation to some Indian employees from the Amazonian Experience and Tech team to leave the company on their own. Those who accepted the offer would get 22 weeks base pay, one week base salary for every 6 months of completed service (up to a maximum of 20 weeks), medical insurance for 6 months and notice period or a lump sum payment in lieu Offered severance package.
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Tags: amazon, business news, business news in hindi, job loss, job news
FIRST PUBLISHED : February 03, 2023, 18:06 IST
