The two biggest giants, Amazon and Meta, are planning to cut their workforce.

Amazon plans to lay off thousands of employees and implement cost-cutting measures after not being profitable in the past few quarters. The company could fire as many as 10,000 employees starting this week.

Besides Mark Zuckerberg shared his thought,

I have decided to reduce our meta team by about 13% and let more than 11,000 talented employees go. It’s very embarrassing for me, but there is no way.

Amazon thinks that the job layoff will target the tech devices group, including the one responsible for the Alexa voice assistant and the retail division and human resources.

Amazon identified the unprofitable units by observing for a month. The world’s largest online e-commerce has spent much of this year adjusting to a sharp slowdown in e-commerce growth as shoppers resume pre-pandemic habits. Amazon has delayed opening warehouses and stopped hiring at the retail group.

Amazon Chief Executive Officer Andy Jassy says, The Alexa division has long been vulnerable because the group’s voice-activated devices have not yet become must-have gadgets. 

During the COVID-19 pandemic years, which was exponential growth in online consumer spending,  Now “Amazon’s growth slowed to the lowest rate in two decades. That’s why the company going an uncomfortable decision.

For these reasons, Amazon is the latest technology company to make deep cuts to its employee base to brace for a potential economic downturn.

Zuckerberg says that, With the onset of Covid, the world has rapidly moved online, and the rise of e-commerce has led to increased revenue. We predicted this would be a permanent acceleration that would continue even after the pandemic ended.

I did too, so I decided to significantly increase our investment. Unfortunately, it didn’t play out the way I expected. Not only has online commerce returned to previous trends, but our revenue has been much lower.

In the new environment, we need to be more capital efficient. We shifted more of our resources to a small number of high-priority growth areas — such as our AI discovery engine, our advertising and merchandising platform, and our long-term vision for Metaverse.

We have cut costs across our business, including reducing budgets, reducing facilities, and shrinking our real estate footprint. We are restructuring the team to increase our efficiency. But these measures alone won’t bring our costs in line with our revenue growth, so I’ve also made the difficult decision to let people go.

But there is no good way to stop layoffs, we hope to get all the relevant information to you as soon as possible and then do what we can to support you through it.