NEWS & BLOG
Views: 15 Author: Site Editor Publish Time: 2023-01-06 Origin: Site
We're only six days into 2023, but the tech-economy winter has begun to creep in—Amazon, Salesforce, and Vimeo just announced more than 25,000 job cuts, amid growing fears of a recession ahead.
According to Bloomberg News on January 5, Amazon CEO Andy Jassy confirmed that the latest round of set to layoffs 18,000 jobs, which is much higher than the 10,000 Amazon planned to cut in early November last year. Amazon employs 1.5 million workers, and the layoffs are the largest in the company's history and the largest of any tech company to announce layoffs recently.
Andy said the layoffs will primarily affect the company's brick-and-mortar locations, including Amazon Fresh and Amazon Go, as well as human resources and other PXT organizations. He also emphasized that it will scale back some of its logistics operations, including closing, canceling and delaying the opening of more than 60 logistics facilities. The company's free Whole Foods delivery service and Scout home delivery robot were also axed ahead of layoffs.
It is understood the job cuts will include the UK and Europe. The layoffs come as Amazon's UK workers plan to strike for the first time. Members of the GMB union at a warehouse in Coventry will strike on January 25 over a pay dispute after voting in favor of industrial action.
Meanwhile, global Saas giant Salesforce said it would lay off about 8,000 employees, or 10% of its workforce.
The San Francisco-based 23-year-old tech giant, which was founded by former Oracle executive Marc Benioff, announced its biggest layoffs to date on Wednesday.
Salesforce CEO Benioff told employees in a letter: "As our revenue growth accelerated during the pandemic, we hired too many people and contributed to the recession we now face, and I am responsible for that. responsibility."
Before the pandemic hit, Salesforce employed about 49,000 people. Salesforce still has 50% more employees today than it did before the pandemic.
Media company Vimeo also said Thursday it would cut 11% of its workforce. A company spokesman said the layoffs will help Vimeo with its economic problems. As of December 2021, the company employed about 1,200 people, according to its annual regulatory filing.
Meta CEO Mark Zuckerberg also admitted not long ago that the rapid growth of Facebook and Instagram during the epidemic has led to his blind optimism. In November last year, Meta announced that it would lay off 11,000 employees, accounting for 13% of its workforce.
The move follows massive layoffs at Twitter, which cut about half of its workforce after Tesla CEO Elon Musk took over in October.
According to data from the tracking website Layoffs.fyi, by the end of 2022, more than 1,000 technology companies around the world have cut more than 150,000 jobs in total.
According to a report from the World Wide Web, dragged down by the slump of popular stocks such as Tesla and Apple, the three major U.S. stock indexes fell across the board on January 3, making U.S. stocks encounter a "open door" on the first trading day in 2023.
In the past 2022, the U.S. stock market ended a bull market that lasted more than ten years, and all three major stock indexes fell sharply. U.S. technology stocks will also step down from the altar in 2022 and be sold off by the market. Among them, Apple has fallen by nearly 30% for the whole year, Amazon's stock price has been cut in half, and META's stock price has fallen by nearly 2/3.
According to CCTV news reports, on January 4 local time, the Federal Reserve released the minutes of the committee meeting from December 13 to 14, 2022. The minutes show that the Fed is committed to fighting inflation and intends to keep the inflation rate close to 2%. It is expected that interest rates may remain high for a period of time until there is clear evidence that the consumer price index is falling.
The Fed is expected to approve a 25 basis point rate hike at its meeting ending Feb. 1, according to CME Group.
According to the Wall Street Journal quoted by the Reference News Network, more than two-thirds of the economists of the 23 large financial institutions that have direct business dealings with the Federal Reserve believe that the United States will fall into recession in 2023. Economists at two other banks forecast a U.S. recession in 2024.
Known as primary dealers, these financial institutions include dealers and investment banks such as Barclays Bank of the United Kingdom, Bank of America Ltd., TD Securities of Canada and UBS AG. They cite red flags, such as Americans running out of money they saved during the pandemic, the housing market in decline, and banks tightening lending standards.