Amazon Now Cutting 18,000 Jobs
In the biggest staff reduction in company history, Amazon is now laying off over 18,000 employees, reflecting the deepening of the tech-industry slump. Previously the company had announced only 10,000 layoffs at this time.
Though many cuts are in the human resources functions, like recruiting, there’s also cuts being made to the retail segment. Overall, the cuts imply the company is bracing for a downturn. Amazon hired too many people during the pandemic and now must reduce their workforce to reflect shoppers returning to pre-pandemic habits.
Amazon has also delayed warehouse openings and stopped hiring retail group staff before freezing the corporate staff and ultimately making cuts. Experimental businesses, such as a telehealth service and kid’s video-calling device, have been eliminated.
Almost 2,000 people were cut from the Devices and Services group, the one that builds the Alexa digital assistant and Echo smart speakers, though Amazon claims to remain committed to voice assistance products.
Oh yeah, and the cuts aren’t over. More will come in 2023
What does this mean for affiliates?
For starters, don’t put all your eggs in the Amazon basket.
Amazon treats their affiliates poorly, such as their huge commission cut in 2020 which hurt so many online marketers. Though commissions did rise again, that wasn’t the first time Amazon did that, and if profits are being hurt, expect to see something happen again to commission rates.
Diversify by working with other merchants as well – you’ll benefit from longer cookie periods and higher commission rates, plus you can actually establish a personal relationship with the merchants if you choose to do so. (Do you actually know anyone at Amazon by their first name?)
Overall, the future for affiliate marketing is extremely bright, especially for content publishers, because the content you produce helps sell the product. You have the opportunity to identify the consumer’s need and offer the perfect item to fill that need. Shoppers are being more prudent in their purchases, less likely to be impulsive, so they are doing more research which makes blog posts about a product or service so much more powerful. Consumers are still willing to spend their money on things they need; your job is to help them find the perfect product. Doing that ensures your future remains bright when it comes to being an affiliate.
Recent Comments
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Not surprised at all. The bigger they are the harder they fall.
They do not treat their employees well. They pollute the environment with their practices and have stolen ideas from others.
Its a shame that they became all about greed. The world is changing and companies need to change with it. Ethical practices and treating people well should be more important than greed.
They treat their merchants and their affiliates horribly, so it wasn't a huge surprise to learn they did the same to their employees. It bothers me every time someone gushes about Amazon. If only they knew!
Most people do know but ignore it because they are convenient to use.
As for being an affiliate with them now its a lot of hard work for very little return.
It is an interesting decline in business that was akin to self-destruction.
Amazon built a business on affiliate marketing and then decided that they could make more money by selling direct and getting rid of affiliates, it seems to be at their own peril
Then they decided to entice affiliates back but alas it was too late, most had decided that Amazon was just too hard.
There are other places to make money, Amazon was just one.
Peter H
Unfortunately, a lot of companies based their staff and forecasts on the insanity of the Covid lockdowns. Now they are being forced to freeze salaries and/or reduce staff. Didn't they see this coming? Even blind people could have told them things would return to pre-Covid levels!
Hi, sunshine, and Jeannine.
Nice to hear from both of you.
All the best moving forward. Our future is truly "extremely bright."
We have the opportunity to identify a need and fulfill that need as affiliate marketers.
You are correct. Shoppers are being more prudent in their purchases.
Here in Canada where I live, a loaf of bread has gone from $1.19 to $5.99.
Potatoes and onions are now sold by weight and not by package.
Potatoes and onions are now $2.00 per pound.
Brocolli and greens...$7.99 per pound.
What part of the world are you from my dear?
I'm sure that I asked earlier and have forgotten.
Thank you for your post.
Yes, much opportunity.
But at the same time, there is much suffering.
Peace, love, and, light always.
Paul from Canada.
Egads.
$7 USD is $9.41 CAD
$8 USD is $10.76 CAD
For eggs and milk.
I no longer "own," I rent.
My rent for a one-bedroom just skipped from $1600.00 CAD to $2100.00 CAD. Completely a free market here in Ontario, Canada.
To add to the insult and injury, I just received a full 3-color card from my local mayor wishing me well for Christmas and a prosperous new year.
Somehow, something here is not right.
A chicken just sold at $12.27 CAD per pound.
That must have been a great chicken. Yes, of course, Antibiotics free.
Do you see any of this nonsense end?
It's always a pleasure to hear from you, Jeannine.
Paul from Canada.
I don't see any end in sight. This is what we voted for in the US (I didn't!) with encouragement around the globe, so it isn't a surprise. Now people globally are suffering. But watch people forget the next time the polls open. They sure forgot in 2022 and will do so again in 2024.
You are right, my dear.
Be wary of where you are keeping your cash.
The Federal Reserve is actually thinking about replacing the USD with a digital token.
Our CAD is actually almost worthless.
An end is inevitable.
Take as much care as you can.
Kindest regards,
Great post.
Paul.
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Gratefully, not an Amazon Affiliate or Walmart. Amazon cut theirs and probably will cut more affiliate percentages after the layoffs. That would not surprise me. They made many delivery vans. They will have to sell those delivery vehicles and cut their workforce there. Walmart just cut a lot down to 1%. BestBuy is no different. I don't join an affiliate network, either. Vendors can drop out anytime, and affiliates do lose out. They have to resort to finding other products to market. I agree that shoppers are being more "prudent" with their spending. Due to the cost of living increases, people now have to pay more for almost everything. My rent went up tripled this year. I found many items expensive, and I can no longer buy them. I go for the lowest-cost product, which is not the best quality, but that's what is affordable for me now.
I'm glad you didn't get caught up in Amazon or WalMart, and BestBuy has been that way for a while as well. Of course I don't agree about not joining a network. For example, on ShareASale, the merchant must have money in their account to pay all commissions before their links work, thus ensuring our affiliates always get paid. In-house programs can close just as easily as network programs; you also have a much higher payout threshold for in-house programs than you would on a network.
Hang in there through these tough times! I know how hard it is out there too.