Amazon, the largest e-commerce company in the U.S., is also reportedly going to lay off 10,000 employees this week. Amazon founder Jeff Bezos also said in an interview with CNN that it is time to prepare for an economic recession.The New York Times and others quoted internal sources as saying that Amazon, the largest U.S. commerce company, will launch a massive restructuring starting this week to lay off up to 10,000 employees.Amazon’s layoffs, which have already stopped hiring new workers since the second half of this year, are expected to focus on technical jobs, retail, and human resources organizations.The New York Times says Amazon is in a hurry in that it is cutting its workforce ahead of the year-end shopping peak season, such as Thanksgiving and Christmas.Amazon, which posted a net profit of $33 billion last year and 44 trillion won in our money, is estimated to have suffered a net loss of 4 trillion won so far this year.Amazon founder Jeff Bezos also told CNN that now is the time to prepare for a recession.[Jeff Bezos/Amazon founder Quote] “Fire is happening in many areas of the economy, and growth is slowing down. Therefore, my advice is that if you are a small and medium-sized business manager, you should delay spending such as purchases.”]
Recently, large technology companies such as Tesla and Meta, which grew rapidly during the COVID-19 pandemic, announced a series of large-scale restructuring.
Some analysts say that technology companies’ poor performance could begin in earnest next year when the impact of the U.S. Federal Reserve’s aggressive tightening appears in earnest.
In a related interview with Bloomberg today, the vice chairman of the Federal Reserve also said that interest rate hikes take time to affect the economy, and that it will be more so in interest-sensitive industries such as technology companies.
[Brainard/U.S. Federal Reserve Vice Chairman/Bloomberg Interview: “It’s seen in industries sensitive to interest rate hikes, but as we talked about at the last monetary policy meeting, it’s going to take a while because there’s a time lag.”]
In addition, Vice Chairman Braynard reaffirmed his position that the Fed will maintain a strong tightening stance, saying that the range of interest rate hikes next month is likely to ease, but there is still much work to be done.
Is the answer only to the economic recession, or is the cause of the loss due to the economic recession? Bio, new drugs, and online commerce have taken considerable sales in the Pendemic situation. But high interest rates, job cuts in high prices, and cuts will not be the only answer.
JULIE KIM
ASIA JOURNAL
