The Labor Ministry has issued a notice to Amazon’s unit in India following a complaint filed by the Nascent Information Technology Employees Senate (NITES) against the company. NITES has alleged that the layoffs by the company are illegal and unethical. Amazon has around one lakh workers in the country. NITES said it has received complaints from Amazon workers that the company is forcing them to voluntarily resign. He has also been sent to VSP for that. In a complaint to the ministry, the retrenchment being carried out by the company is in violation of the Industrial Disputes Act.
The company plans to cut a total of 10,000 jobs. This will include retail and human resource departments. A number of tech companies have cut jobs in the past few weeks. This includes Facebook and Twitter. Amazon executive Dave Limp said in a blog post last week that the company has decided to downsize its devices unit. He had said, “We are facing an uncertain macro economic environment. Over the last few months we have increased our focus on the areas that are most important to our customers and business.”
Amazon has about 300,000 workers worldwide, and about 3 percent of those workers could be laid off. Voice assistant Alexa is one of Amazon’s best-selling devices. However, the company’s founder Jeff Bezos says that these devices are sold at a discount and the price is sometimes below cost. Bezos recently said that he plans to give away a large portion of his multi-billion dollar fortune to charity. Bezos, the fourth richest person in the world, is estimated to have a net worth of more than $124 billion. Through his donation, a large amount will be spent on efforts to combat climate change.