Amazon freezes corporate hiring in its retail business

Amazon has frozen hiring for corporate positions in its retail business, the latest sign that the world’s largest e-commerce company is adjusting its workforce in the face of slowing online sales.

The e-commerce boom experienced by the pandemic now seems to be cementing itself and seeking a level of balance, less explosive than in 2020 and 2021. Already close to the end of this year, consumers have returned to physical stores, where precisely they expect to receive more omnichannel experiences.

As first reported by The New York Times and later confirmed by several US media outlets, Amazon has ordered recruiters to close all open job postings for these positions in the coming days. He also recommended that they cancel certain recruiting activities, such as phone calls to assess new candidates.

In one of the emails, he said the company would stop hiring globally for all company positions, including technology positions, in its store business, which covers the business of Amazon’s online and physical retail and logistics operations. More than 10,000 job openings were posted in this division, which accounts for the majority of Amazon sales, Monday night.

Amazon suspends hiring due to slowing sales

The general freeze will not affect the company’s most profitable cloud computing division. Certain roles, such as student recruitment and field positions, were exempt from the break, according to the letter. It is worth mentioning that in June this year, Amazon appointed a new global head of retail.

The Brad Glasser, spokesperson for Amazonsaid the retail giant continues to have a significant number of job openings at the company. “We have many different companies at various stages of development and we plan to continue to adjust our hiring strategies at each of these companies at various times”Glasser said in a statement.

Amazon freezes corporate hiring in its retail business

The electronics company thus joins other large companies which have paralyzed their hiring for a year, in the midst of increasingly acute economic uncertainty. Its peers at GAFAM (acronym for big tech), Google (Alphabet), Apple and Meta (formerly Facebook) have also announced that they won’t be hiring new talent for some time. Companies are also looking for ways to cut costs to prepare for possible headwinds.

READ ALSO: Amazon CEO says he won’t force his employees back to the office

The Andy Jassy, ​​CEO of Amazonworked quickly to rein in costs as the company grapples with slowing growth in its core retail business, which still accounts for the bulk of Amazon’s revenue.

Retail has seen tremendous growth during the Covid-19 pandemic, with consumers avoiding trips to physical stores and flocking to online retailers. At the start of 2022, e-commerce spending began to slow, with Amazon posting its slowest first-quarter revenue growth rate since the 2001 dot-com crash.

Jassy assured investors he was focused on getting back to a “healthy level of profitability” after slowing retail sales and rising costs hit Amazon’s profits. In recent months, Amazon has closed or canceled the launch of new facilities and is delaying the opening of some new buildings after its pandemic-driven expansion left it with too much storage space.

It also closed nearly all of its US call centers in a bid to save on real estate, Bloomberg reported. The company is also facing too many workers after a pandemic hiring spree. In the second quarter, Amazon reduced its workforce from 99,000 to 1.52 million employees.

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