It is reported that during the epidemic period, the business of American e-commerce giant Amazon was hot, but the good days are no longer. With the slowdown of growth and the rise of various costs, Amazon's retail business is reducing its external recruitment target, and the number of recruits will be lower than previously planned. Gokul dakshina, Amazon's vice president in charge of finance, sent an email to the team, saying that with limited resources, the team should make priority adjustments.
A person familiar with the matter said that some departments of Amazon had cut their recruitment target by 7%.
Another email leaked last month showed that Amazon's "global consumer business" has reduced the number of recruits this year by 1511. This department is responsible for Amazon's online stores, warehouse distribution, logistics and other businesses. It is a large department.
According to a person familiar with the matter, the number of recruits to be reduced is mainly functional department employees who receive annual salary, rather than warehouse workers who receive hourly salary.
An Amazon spokesman did not comment on the report.
In the future recruitment plan, you have to adjust the priority of the recruitment team. Please understand that it is not ideal for the management to adjust the recruitment plan accordingly
Dakshina said the decision to reduce the size of recruitment was made after a meeting with CEO jasi and chief financial officer Brian olsavsky. He stressed that if the retail business grows again and reaches a certain growth target, he will ask Dave Clark, the top executive of Amazon's retail business, for further investment.
The slowdown in external recruitment is the latest sign of the slowdown in Amazon's overall business. Last month, Amazon released disappointing first quarter results. The data showed that consumer shopping demand was declining and profit margins were also declining.
Chief financial officer olsavsky said that during the epidemic, Amazon's business expanded excessively, resulting in a surplus in warehousing, logistics and staff.
On the analyst conference call, olsavsky said that compared with the market demand, Amazon currently has excess warehouse space.
In many areas, Amazon is "slimming down". According to media reports, Amazon has expanded the third-party logistics distribution partner network in the past two years, but will control the growth rate of this plan this year.
In addition, since 2020, Amazon has doubled the capacity of its warehouse network (i.e. online purchase order delivery center). However, the company's executives said last month that they no longer pursue to continue to expand the scale of warehouse facilities and the workforce.
It is worth mentioning that Amazon is not the only American technology company to reduce its recruitment plan recently. With the increasingly serious inflation in the United States and the sharp turmoil in the capital market, companies including meta, salesforce and twitter, the parent company of Facebook, have cut recruitment targets or simply frozen recruitment.