As it was announced on their own blog, Amazon will be freezing their recruitment plans as they join the roster of several companies who have halted hiring for this year given that the economy has been very tight lately. This restriction will take effect on the company's corporate workforce.
This photo shows the Amazon logo at the 855,000-square-foot Amazon fulfillment center in Staten Island, one of the five boroughs of New York City, on February 5, 2019. - Inside a huge warehouse on Staten Island thousands of robots are busy distributing thousands of items sold by the giant of online sales, Amazon. JOHANNES EISELE/AFP via Getty Images
(Photo : JOHANNES EISELE/AFP via Getty Images) This photo shows the Amazon logo at the 855,000-square-foot Amazon fulfillment center in Staten Island, one of the five boroughs of New York City, on February 5, 2019. - Inside a huge warehouse on Staten Island thousands of robots are busy distributing thousands of items sold by the giant of online sales, Amazon.
Amazon's Freeze Hiring
Aside from the several companies that have announced that they will be halting their recruitment plans for this year, Amazon will also be joining the list. As announced by its Senior Vice President of People Experience and Technology Beth Galletti on the official blog of Amazon, it is stated that they have already started pausing the recruitment for the past weeks.
This move will take effect on the workforce of its corporate sectors. No specific dates were given regarding how long will this operate but as per the announcement, it will last for a few months, and will start adding new employees by next year. As per Galletti, the freeze hiring will have exceptions, especially to replacements for vacated existing roles.
TechCrunch reported that this will not be affecting the operations of the company for the upcoming holidays (Black Friday, Thanksgiving, Christmas, etc.) as the corporate workforce are different from the roles in the Amazon fulfillment centers.
Reason for Halted Hirings
According to Engadget, the company faces an "unusual macro-economic environment" and wants to stabilize its hiring and investments given the company's situation with the economy. With that, Amazon decided to not spend too much money on its workforce as it faces financial problems within the company.
"With fewer people to hire this moment, this should give each team an opportunity to further prioritize what matters most to customers and the business, and to be more productive," she added.
Last month, Chief Executive Officer Andy Jassy has been making adjustments and aggressively cost-cutting expenses to different areas of the company.
CNBC reported that Amazon shut down its telehealth service, discontinued a video-calling projector for children, closed several call centers in the United States, discontinued its delivery robot, and delayed or canceled the construction of its warehouse locations in the country.
Jassy stated, "There are some years where they're expanding really broadly. Some years where they're checking in and working on profitability, tightening the belt a little bit. And sometimes when you have multiple businesses like we do at Amazon, some businesses are expanding at the same time that others are checking in."
