Published: Thu, February 15, 2018
Markets | By Rosalie Gross

Amazon cuts hundreds of jobs from its Seattle HQ due to 'overstaffing'

Amazon cuts hundreds of jobs from its Seattle HQ due to 'overstaffing'

In a statement, Amazon.com Inc. says it is still hiring aggressively in some areas and will consider those affected for other roles.

The company now has 3900 jobs open in Seattle, and staff facing job cuts can apply for them. Currently, Amazon has over 12,500 open corporate jobs available-and thousands more at its warehouses.

Amazon counted more than 560,000 full and part-time workers worldwide at the end of December, an expansion of more than 65% from the previous year.

The move coming from a second-largest US-based employer has surprised the industry. "Additionally, Amazon now employs more than 17,500 veterans and military spouses across the USA, and plans to hire over 10,000 more by 2021". Those laid off are encouraged to apply for other open positions at the company. That's an 800 percent increase in just seven years!

"We use our performance-management process to recognize talent, help employees develop their skills, and in some cases, make employees aware that they are underperforming", a spokesman said.

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This announcement does not appear to be having an impact on Amazon's current search for a second headquarter location. Amazon has indicated that hiring for the new headquarters could begin from 2019. The company had implemented hiring freezes across several verticals in recent months, especially for its Seattle headquarters.

Matt Damon, Taika Waititi, Amazon Founder/CEO Jeff Bezos, Chris Hemsworth, and MacKenzie Bezos attend Amazon Studios' Golden Globes Celebration at The Beverly Hilton Hotel on January 7, 2018 in Beverly Hills, California.

Amazon now employs about 40,000 people in Seattle, and 560,000 worldwide.

In the same report, it was estimated that Amazon has so far cut back around 500 corporate employees from around the United States in the past two years.

Amazon has said that those being cut are being given the option to be assigned to a different division in the company that is growing.

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