Amazon plans to fire thousands of workers

Amazon plans to fire thousands of workers

About 3% of Amazon’s corporate workforce would be affected by job cutbacks.

Approximately 10,000 employees in corporate and technical jobs will be let go by Amazon.com Inc. starting this week, according to a person familiar with the situation on Monday. This will be the company’s largest layoff to date.

The layoffs, as the New York Times previously reported, would affect around 3% of Amazon’s corporate personnel. As Amazon’s divisions evaluate their objectives, the precise number can change, the source told Reuters.

According to the source, the online retailer intends to cut positions in its devices division, which creates “Alexa” voice-controlled gadgets and home security cameras, as well as in its human resources and retail departments. Unknown was when Company would inform the personnel.

The insider blamed Amazon’s and other companies’ uncertain macroeconomic situation for the cut.

Following years of swift hiring, the technology industry has experienced a wave of layoffs and is now apprehensive of a recession. Just last week, Facebook parent company Meta Platforms Inc. announced it would reduce costs by 13% by eliminating more than 11,000 jobs.

amazon-plans-to-fire-thousands-of-workers

The traditionally prosperous holiday season is expected to see a dip in sales growth, according to Seattle-based Amazon.

In a conference call with reporters last month, Chief Financial Officer Brian Olsavsky stated that the company was continuing to struggle with rising inflation and energy expenses and that it was beginning to see symptoms of tighter household budgets for purchasing.

Since then, it has said that it will temporarily halt all corporate employment.

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The Wall Street Journal revealed last week that Amazon’s devices division had seen yearly operating losses of more than $5 billion in some recent years. According to the report, the business has debated whether to concentrate on developing new features for Alexa given that some users only use the voice assistant occasionally.

The projected layoffs represented less than 1% of Amazon’s overall workforce, which stood at more than 1.5 million employees as of September 30 when warehouse and transportation roles were taken into account.

Over 40% of the value of Amazon’s shares has been lost this year. On Monday afternoon, at $99.67, they were down 1.1%.

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