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.