Amazon drops 100,000 employees in Q2

Amazon ended June with 100,000 fewer employees than the company reported in the first quarter.

Brian Olsavsky, CFO of Amazon, said during the second-quarter earnings call July 28, as transcribed by The Motley Fool, that the company hired a lot of people during the first quarter to ensure coverage while the omicron variant hit many employees. When omicron subsided, the company had a higher headcount position and Mr. Olsavsky said the company adjusted hiring levels amid normal attrition to resolve the inflated headcount.

Amazon ended the quarter with 1.5 million full- and part-time employees, a 6 percent reduction from the first quarter. However, the company increased headcount 14 percent year-over-year, adding 188,000 employees since the second quarter of 2021.

Mr. Olsavsky said the company is focused on creating a good workplace environment to attract employees in the future. Amazon reported $2 billion net loss in the second quarter, although net sales were up 7 percent to $121.2 billion and results were better than analysts anticipated. The company's stock was up 11.7 percent on July 29 after the announcement.

Many tech companies are reducing their workforces and undergoing mass layoffs as compensation for IT professionals increases with inflation.

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