After Firing 18,000 Employees, Amazon CEO Jeff Bezos Lost Nearly $1 Billion

Amazon layoffs have affected the share price of the company, and has led to a loss of $949 million for Jeff Bezos

Jeff Bezos's wealth is dwindling as his firm, Amazon, dismisses 18,000 people across departments. Due to the unstable economy, the corporation indicated that layoffs would begin in January 2023. A day after firing 18,000 employees, Amazon CEO Jeff Bezos lost nearly $1 billion.

Why Did Amazon Fire So Many Employees?

Amazon is presently navigating the economic slowdown's unpredictability. Like other IT firms throughout the world, the Seattle-based corporation has been badly damaged by the continuous wave of recession. And to stem the decline in income, Amazon has opted to cut costs by laying off thousands of people from its global workforce. The IT giant laid off thousands of workers last year and planned to lay off many more in January. However, during all of the firings, the company's share prices plummeted, directly affecting the net worth of its creator, Jeff Bezos.

Is Amazon Losing Money Due to Mass Firings?

According to the Bloomberg Billionaires Index, which analyses the real-time net worth of billionaires, Jeff Bezos lost $949 million (Year To Date), which is around $1 billion, in a single day after Amazon announced the layoff of 18 thousand employees. Bezos, the sixth richest person globally with a net worth of $106 billion (as of 6 January), is anticipated to lose much more if Amazon shares decline. The e-commerce company revealed intentions to lay off nearly 18,000 workers on Thursday, blaming economic difficulties. According to CEO Andy Jassy, "this year's evaluation has been more difficult as a result of the uncertain economy and that we've employed fast over the previous several years," therefore, the business is continuing to lay employees across departments. The layoffs will have a significant impact on Amazon Stores and PXT businesses.

Have the Employees Been Fired from all Divisions in Amazon?

Employees affected by the layoffs will be notified on 18 January. However, the business publicised the new prior "because one of our coworkers outside released this knowledge," according to Jassy. Amazon sacked hundreds of employees across divisions earlier in November 2022 but did not release the number of impacted employees. However, in the most recent news, Jassy stated that the corporation would lay off 18 thousand people. "We aim to reduce little over 18,000 jobs between the reductions we announced in November and the ones we're disclosing today," he stated.

Conclusion

Significantly, the corporation will assist impacted employees in the separation process by offering separation compensation, transitional health insurance coverage, external job placement support, and other perks. "We will help the transition with a package that includes a separation payout, transitional benefits, and external job placement assistance," stated Dave Limp, Amazon's Senior Vice President of Devices and Services.