Amazon still a brilliant career choice despite economic headwinds

We’ve all seen the news. We’ve all read the headlines.

Interest rates are rising. Economic growth is slowing. Recessionary fears loom large. The dreaded ‘hiring freeze’ threatens career plans.

Amazon is not immune. Recent headlines have hinted at significant layoffs and hiring freezes. After experiencing one of the most rapid talent expansions in the history of business, with 375,000 jobs added in the last 2 years, Amazon is having to become increasingly rational with its approach to people.

While the worst is likely not yet behind us, there are some big reasons why the recently bleak Amazon narrative isn’t a significant threat to those looking to become an Amazonian.

What’s more, while the difficult narrative continues to unwind in the press, it’s likely to continue to depress the overall job market. And if you’re serious about moving into an Amazon role, you’re well positioned to take advantage of that. There are 1000’s of open Amazon roles live right now, including corporate and head office. Now’s the time to be looking into them and forging a path to secure one.

3 reasons Amazon is still a viable career choice

1. A hiring freeze is never all encompassing

While one division needs to reduce hiring because it’s too speculative, another cash generative team desperately needs a new designer and a commercial team has experienced more demand than expected and is leaving money on the able unless they hire a new sales lead. This is the reality in a large and diversified business. A hiring freeze is never a blanket hiring freeze. Redundancies are usually listed to specific areas that are overstaffed, less strategically important or have under delivered. Take headlines with a pinch of salt. Check job boards. Talk to recruiters. The odds of the job you want being cut or frozen are 100/1. Don’t fall for the press narrative.

2. Remember, this isn’t about Amazon, it’s about the tech sector as a whole

It’s important to note that layoffs and hiring freezes are currently part of the narrative in every business listed on the Nasdaq. The Nasdaq is the stock market exchange that hosts most of America’s tech companies. This is due to its legacy of having less stringent listing requirements than the established NYSE, and being favoured for first time listings in the last 2 decades.

The Nasdaq, as such, has been the ‘growth stock’ hub of the modern investor. For much of the pandemic every stock on this exchange has been a rocket ship. With values doubling and tripling consistently with no end in sight. Amazon has outperformed that index, delivering astronomic share price growth.

That is, until this year…

While the last 2 years have largely been about share value appreciation, the currently complex macro environment is causing a sharp reversal. This is putting pressure on companies to be more rational with cost and hiring, in particular as head count increases represent a permanent run rate increase to the management of a company. Of course it’s easy to green light roles when your share price is growing exponentially. It’s much harder to do that when it’s falling the other way.

In many ways, the current events have very little to do with Amazon itself. While economic headwinds are never pleasant to experience, they are also not unusual and do not represent a fall from grace by the business.

3. For a growing business, hiring freezes and redundancies are normal

We’ve been conditioned to have an allergic reaction to any hint of a big business trimming staff or reducing hiring. However, these activities aren’t necessarily bad.

When a business grows quickly in a changing environment, it’s the duty of management to take stock and recalibrate in difficult conditions. Hiring freezes help a finance team war chest cash and delay investment into new business areas until the economic climate is more certain.

Redundancies are always difficult, but they’re also a necessary part of reacting to changing needs in the market. Trimming teams is difficult, and steps must be taken to support moving affected individuals into other viable roles. However from a management perspective, these are necessary actions to free up limited capital to redeploy to the most promising investment areas.

4. Amazon is competing for it’s future

Amazon’s future growth trajectory hasn’t changed. It’s the everything store. It’s the infrastructure provider of the future. It’s the place a customer can get anything. It’s ruthlessly customer obsessed and benchmarks itself against the best (in true ALP fashion).

While Amazon hasn’t publicly jumped on the Metaverse, Crypto or NFT bandwagon, it’s been quietly making investments and product improvements that align with all of the future looking themes that have dominated news headlines.

And all of that requires capital and talent.

In the long term, Amazon’s demand for strong leaders is as high as ever.

If you’re on the fence about applying in the current economic conditions. Or if your target role has indeed been frozen or cut. Fear not.

Now’s a great time to be reaching out to Amazon employees in teams you’re interested in to learn about their projects, team challenges, and priorities. It’s a great time to get up to speed with what Amazon values in hiring - such as the leadership principles - and get ahead of the process.

Our Stelity Guides can help you familiarise yourself with the Amazon interview process, the Leadership Principles, and what Amazon looks for.