On Tuesday, Amazon began what is expected to be the largest round of corporate layoffs in its history, according to current employees who have been affected.
The company aims to lay off about 10,000 employees in its retail, devices, and HR divisions, the New York Times previously reported.
Workers targeted for layoffs received cryptic invitations to "mandatory" Tuesday meetings with teammates, leaders, and human resources personnel, according to one such invitation seen by Insider. During the meeting, employees were informed that they would have 60 days to find a new job internally. If they did not find a new job after that time, they can take severance. It was not immediately clear how much severance Amazon is offering.
It's also not clear how easily impacted employees will be able to find a new job internally. Amazon recently announced a companywide hiring freeze that also applies to internal transfers.
Many people grapple with work-related anxieties, such as:
- “When I check my emails in the morning, I fear I might be locked out of my job.”
- “I am working tirelessly to prove my worth as an employee and I still feel inadequate.”
- “I’m on pins and needles every day waiting to hear what this corporate restructuring will mean for me.”
If you relate to the above, know that you are not alone.
Constant worry about losing your employment can have a negative influence on your well-being. Nobody likes to exist in a prolonged state of uncertainty.
According to research published in Frontiers in Psychology, job insecurity can have a detrimental effect on your motivation and focus and can cause mental health problems including anxiety and depression.
Being laid off is tough. Feeling a wide range of emotions in the aftermath of a layoff – including sadness, anger, fear, and anxiety – is natural.
If you’re struggling to cope with anxiety related to job insecurity or a potential layoff, here are three things you can do to manage it.
#1. Identify your triggers and plan ahead
The first step is to identify what is triggering your anxiety. Knowing the cause of your anxiety can help you to develop a plan to address those concerns – perhaps by deploying ‘defensive pessimism.’
A study published in Social and Personality Psychology Compass found that defensive pessimism, or mentally practicing your response to worst-case scenarios, can help you manage anxiety in a healthy way.
For instance, once you have some clarity about the cause of your anxiety, create a contingency plan. Consider what you would do if you were suddenly fired. What would be your course of action? Do you have emergency funds? Detail every step of your plan. Consider your approach to dealing with issues like money, health, and employment.
The activity of making contingency plans will give you a sense of control which can help quell your anxiety.
#2. Remind yourself of your strength
When you’re caught in a challenging situation, try to recall some of the hardest things you’ve successfully overcome in your life.
A study published in the Journal of Consulting and Clinical Psychology showed that people who were made to think of a situation they overcame displayed enhanced psychological well-being.
Emerge yourself in reflection. Start by thinking of an instance that was difficult for you to handle and ask yourself questions like:
- “What qualities enabled me to succeed?”
- “How was that situation similar to my present situation?”
Reminding yourself of how you’ve confronted and risen above adversity in the past is a well-proven resilience strategy. This will help you recognize your resourcefulness in the event you face a layoff.
#3. Your work is just part of your identity, not all of it
A study published in the journal Frontiers of Psychology showed that people who reduce themselves down to one attribute – their job for instance – are more likely to feel dehumanized (like nothing more than a machine or tool) and have higher levels of disengagement, depression, and burnout.
This highlights the importance of diversifying your sense of self. You can start by investing in several facets of your life. For instance:
- Spend time on your hobbies. Pick a new one or get back to something that you might have abandoned.
- Get your fitness regimen back on track. Look into enhancing your mental and physical well-being through activities that encourage you to move your body.
Diversifying your identity can prevent you from losing any sense of who you are when things at work aren’t going well.
Losing your job is a difficult experience, but there are things you can do to help manage your anxiety during this time. Remember that you are not alone. Stay positive. Keep your mind occupied. Take care of yourself physically and emotionally. And, don’t be afraid to seek out professional help.
Amazon founder Jeff Bezos recently warned consumers and businesses they should consider postponing large purchases in the coming months as the global economy contends with a downturn and faces a possible recession.
The business leader offered his starkest advice yet on a faltering economy in an exclusive sit-down interview with CNN’s Chloe Melas on Saturday at Bezos’ Washington, DC, home.
Bezos urged people to put off expenditures for big-ticket items such as new cars, televisions and appliances, noting that delaying big purchases is the surest way to keep some “dry powder” in the event of a prolonged economic downturn. Meanwhile, small businesses may want to avoid making large capital expenditures or acquisitions during this uncertain time, Bezos added.
If enough consumers follow through with Bezos’ advice, it could mean lower sales for Amazon, the e-commerce giant Bezos founded and that created the vast majority of the billionaire’s wealth.
The New York Times reported Monday that Amazon plans to slash its workforce, laying off 10,000 workers, the largest reduction in the company’s history. That’s in addition to a previously announced hiring freeze in its corporate workforce. The company is second only to Walmart in the number of people it employs in the United States.
Amazon (AMZN) said in October it expects sales for the final three months of the year to be significantly below Wall Street’s expectations. The weaker forecast came as rising inflation and looming recession fears weigh on consumer purchasing decisions as Americans focus more on travel and dining out and less on buying discretionary goods.
The company’s stock has fallen more than 40% as surging prices and changing customer behavior weigh on Amazon and the broader tech sector.
Bezos said the probability of economic conditions worsening makes it prudent to save some cash if it’s an option.
“Take some risk off the table,” he said. “Just a little bit of risk reduction could make the difference.”
Last month, Bezos tweeted a warning to his followers on Twitter, recommending that they “batten down the hatches.” The advice was meant for business owners and consumers alike, Bezos said in the interview.
Many may be feeling the pinch now, he added, but argued that as an optimist he believes the American Dream “is and will be even more attainable in the future” — projecting that within his own lifetime, space travel could become broadly accessible to the public.
Although the US economy is not, technically, in a recession, nearly 75% of likely voters in a recent CNN poll said they feel as though it is. Wages are up, but not enough to take the sting off inflation, most notably high prices of necessities like food, fuel and shelter. For those invested in stocks, it’s not been a great year, either, and that’s especially hard on retirees who are living off their investments.
Other business leaders have issued similar messages about the economy in recent months. Tesla (TSLA) and Twitter CEO Elon Musk last month admitted demand for Tesla (TSLA)s was “a little harder” to come by, and noted that Europe and China are experiencing a “recession of sorts.” Musk also warned that Tesla (TSLA) would fall short of its sales growth target.
JPMorgan Chase CEO Jamie Dimon in October spooked the stock market by saying a recession could hit the United States in as little as six to nine months.