Today, an informed source revealed that some employees of Amazon China received layoff notification emails from the headquarters. The email shows that Amazon has optimized the team in other areas of the business and found duplication in work categories such as project management and sales operations, so it has decided to cut hundreds of positions in specific sales, marketing, and global services (SMGS) organizations. It is understood that these layoff actions are to adapt to the demands of Amazon’s strategic adjustments, and Amazon is planning to make cuts in the right places in order to further invest in other business priority areas.
Amazon said that in the past few months, it has put the OP1 strategy into practice, giving priority to the matters that are most important to customers, and has identified several target areas that need to be streamlined in order to continue to further invest in the key strategic areas that will have the greatest impact. For example, in the training and certification organization, we have developed a strategy to prioritize investment in self-service digital training and provide teacher-guided training through AWS training partners. Teams have been optimized in other areas of the business, and it has been found that there is duplication in work categories such as project management and sales operations.
In the letter, Amazon said that we do not make these decisions easily, change is difficult, and we are in an ever-changing industry. The organization needs to maintain flexibility, and change is to prepare for the future and be consistent with strategies and priorities, and reduce duplication and inefficiency.
Finally, Amazon said that it is very difficult to say goodbye to everyone, and in order to assist the transition, a package of solutions will be provided, including full pay and benefits during the transition period, severance pay, transitional benefits (depending on the country), an internal job search period, and external employment placement.
Although Amazon has provided good compensation measures, it still caused concerns and dissatisfaction among many employees. However, from the email, employees in Canada and other places seem to have also been affected.
It is worth mentioning that in the first quarter of this year, Amazon officially released a notice of the revision of overseas purchases and officially closed the computer-side service of Amazon China (Amazon.cn), and users will no longer be able to place orders for shopping through the computer-side web page, nor will it provide Chinese Prime membership services.
At that time, there were rumors that Amazon was going to exit the Chinese market, but then some industry analysts said that Amazon’s move did not intend to withdraw from the Chinese market, but to further embrace the trend of mobile shopping and cancel the shopping services provided on the computer side previously.
Amazon China is a Chinese B2C e-commerce website, headquartered in Beijing, and has established branch offices in Shanghai and Guangzhou. It was formerly known as Joyo.com.
In early 1999, Lei Jun established Joyo.com, which mainly provided software downloads. In May 2000, Joyo.com transformed to focus on book, audio, and video e-commerce.
In September 2004, Amazon acquired Joyo.com for $75 million, and then gradually transformed Joyo.com according to its global strategy. In 2007, it was renamed “Excellence Amazon”, and in 2011, it was renamed “Amazon China”.
It is worth mentioning that in the past two years, Amazon has laid off nearly 30,000 people globally, but this still did not stop Amazon from continuing the layoff action to this year. CEO Andy·Jassy began to significantly cut operating costs after the rapid expansion during the pandemic, and even cut off several projects planned in the Bezos era.
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