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Union Labour Ministry summons Amazon India over layoff plan: Report

Amazon layoff: A labour union said layoff can’t be done without government’s nod.

Amazon, the world’s leading e-commerce website, has been asked to appear before the Deputy Chief Labour Commissioner in Bengaluru in connection with reports of forceful lay-offs in the company. The Union Labour Ministry has sent a notice to the American company’s India subsidiary to appear personally or through an authorized representative.

“You (Amazon) are therefore requested to attend this office with all relevant records in the matter either personally or through an authorized representative on the aforesaid date and time without fail,” the Ministry’s notice — accessed by IANS — reads.

A complaint was filed by the employee union Nascent Information Technology Employees Senate (NITES) saying the company was in violation of the labour laws. 

NITES said the Jeff Bezos-led company removed several employees forcefully from the company.

The union said the company has sent a notification as to the Voluntary Separation Programme with a deadline of November 30, which has affected the livelihood of many people.

It also said that a mass layoff can’t be done without permission from the government.

Amazon, which has its main office in Bengaluru, is planning to lay off 10,000 employees by the end of 2023.

Also read: Amazon, Flipkart, Zomato to disclose all paid reviews, Government announces new norms

With this, it has joined the ranks of several technological bigwigs like Microsoft, Twitter, and Facebook who have decided to cut costs and maximise profit amid fears of recessions.

Many of these companies had done rapid hiring to meet the pandemic demands, but their markets didn’t change post-pandemic as they had expected.

The world is heading for an economic downturn as the coronavirus pandemic and the Russia-Ukraine war have stressed the supply chains of essentials and sent the prices of essentials soaring.

Due to the rising inflation, policy rates in several countries, including the United States and India, have been scaled up.

Also read: Here’s how much Meta, Twitter, Amazon are offering to laid-off employees

Many Indian startups, including Byju’s, have laid off people claiming a lack of funding.

Many start-ups have laid off employees fearing a long-drawn funding winter.