Amazon plans to lay off about 10,000 employees in corporate and technology roles in the coming days, according to various reports (The New York Times, The Wall Street Journal).
The cuts will be the largest in the company's history, largely affecting departments involved in organizing devices , retail sales and human resources management, according to reports. The layoffs will affect less than 1% of Amazon's global workforce and 3% of its corporate employees .
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This latest report joins others that shed light on staff cuts at other major tech companies. Meta last week revealed it was laying off 11,000 employees. Twitter, just days after being acquired by Elon Musk, laid off nearly half of its workforce. In recent months, other companies such as Snap, Microsoft and several cryptocurrency companies have made similar decisions.
Amazon has been adding a lot to its workforce lately. As of December 31, 2021, the company had 1.6 million employees , up from 798,000 at the end of 2019. The New York Times reported that the total number of upcoming layoffs “remains fluid” and could change.
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It's worth noting that the holiday season is approaching, which is crucial for Amazon, and a time when the company usually increases staff to meet high demand. However, under the leadership of Andy Jassy, the company has reduced its staff compared to previous years. Andy Jassy, who took over as CEO in July 2021, has cut costs to save money as the company faces slowing sales and an uncertain future due to the global economic crisis.
Before the reports of layoffs, Amazon had announced that it intended to freeze hiring for corporate roles in its retail business.
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Recently, Amazon products and services its, including a telehealth service, a video-calling projector for children , etc. It has also closed several US call centers and warehouses.
Amazon's third-quarter earnings, reported in October, fell short of expectations and sent its shares down more than 13%. This was the first time Amazon's market value had fallen below $1 trillion since April 2020.
Source: www.cnbc.com
