Amid layoffs, Amazon 'over-hiring' issue revealed: 25,000 job openings posted for 7,800 approved positions

An internal document has revealed that Amazon Web Service's (AWS) utility computing team posted a staggering 24,988 job openings in 2022, but only 7,798 of those positions were approved to be filled. This lack of oversight has led to what the document calls "over-hiring" and a process that is prone to inconsistency, error, and potential misuse.

According to the document obtained by Business Insider, Amazon's over-hiring problem has led to "span of control and level ratio defects." The term "span of control" refers to how many direct reportees each manager has, while "level" denotes how senior an employee is. The defects in Amazon's "level ratio" suggest that the unit may have hired more over or under-qualified people than what was originally budgeted for.

A former recruiting manager at Amazon told Insider that the job postings were meant to be "actively" filled as the company aimed to expand during a booming economy, but the lack of oversight led to "over-hiring issues." Leaders at the company would reportedly "squeeze people in where they could."

Also read: OpenAI issues warning to ChatGPT users after bug leaks private conversations

These hiring practices have been called into question, particularly as the company conducted its largest layoffs in history in January 2023, eliminating 18,000 roles, mostly from its Amazon Stores and People Experience and Technology Solutions divisions. And now, the company's CEO, Andy Jassy, has announced an additional round of layoffs, which will cut 9,000 employees, including some in AWS, Twitch, and advertising.

"This year's review has been more difficult given the uncertain economy and that we've hired rapidly over the last several years," Jassy wrote in the January memo to staff.

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