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Hiring Pace at Amazon has Slowed Dramatically

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Despite falling demand and growing costs throughout its business, Amazon has stopped hiring after its hiring frenzy during the pandemic. According to the company's most recent earnings report, the third quarter saw a 21,000 increase in headcount. That is insignificant compared to the same time periods in 2021 and 2020, when Amazon added 133,000 and 248,500 employees, respectively. Currently, 1.54 million people work directly for Amazon, an increase of 5% over last year. Following the release of lower-than-expected Christmas quarter guidance, the Seattle tech titan experienced a roughly 20% decline in share price on Thursday. The company is bracing for "what could be a slower growth era," according to Amazon CFO Brian Olsavsky, because of higher foreign exchange headwinds, global inflation, elevated gasoline prices, and growing energy expenses. Hiring pace at Amazon has slowed dramatically Olsavsky claimed that Amazon is "tightening our belt" by halting employment in some businesses and discontinuing products and services in order to assist in counteracting declining sales. He declared, "We're going to be very careful on our recruiting. Olsavsky added that, particularly for technical workers, "we have experienced inflation in our wages this year." According to reports, Amazon has stopped hiring for corporate positions within its retail division.  After overstaffing its warehouses to meet the demand caused by the pandemic, Amazon's direct workforce decreased by 99,000 people from the first to the second quarter, the highest sequential drop in its history. Attrition in Amazon's fulfillment and distribution network was the main cause of the fall. Hiring pace at Amazon has slowed dramatically The job drop that has occurred sequentially over the last three quarters is a clear sign of the changeover in Amazon's warehouses. Usually, the business would fill vacancies with new employees, masking the exits. Microsoft, one of the other software behemoths that also had high employee growth during the epidemic, indicated this week that its headcount growth during the current quarter will be "modest." Those who work for Amazon's third-party vendors, partners, and contractors are not counted among the company's direct employees; an example of this would be package delivery drivers who are employed by independent businesses but use vans with the Amazon logo.

By Saloni Behl

I always had a crush on technology that\'s why I love reviewing the latest tech for the readers.

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