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Amazon plans to cut 10,000 jobs: reports

Written by beaconnewspaper
The layoffs would represent 3% of the company’s global workforce. It comes amid similar moves in the tech world in the face of a global economic slowdown.Online retail giant Amazon is planning to cut 10,000 jobs, which is 3% of its global workforce, as it grapples with the uncertain economy taking over globally, the New York Times (NYT) and Wall Street Journal (WSJ) reported on Monday.

The cuts are expected to start rolling this week, NYT said, citing people with knowledge of the matter.

The layoffs would target those working in Amazon’s devices unit, retail division and human resources, according to the reports.

The devices unit includes the much publicized and less successful voice-assistant Alexa.

If confirmed, this would be the biggest layoff ever introduced at Amazon since it was launched in 1994.

Mass layoffs across Big Tech

The report comes as several tech companies struggle to sustain their businesses amid turbulent economies.

The social media giant Meta, which runs Facebook, Instagram and Whatsapp, announced last week laying off 13% of its workforce, whereas Twitter, under new owner Elon Musk, sent home half of its worldwide workforce.

Many have seen the cuts as the end of a so-called tech boom which has reigned over the last decade or so. Inc is planning to lay off about 10,000 people in corporate and technology jobs starting as soon as this week, the New York Times reported on Monday, citing people with knowledge of the matter.

The job cuts will focus on the e-commerce giant’s devices unit, which houses voice-assistant Alexa, as well as its retail division and human resources, according to the report, which also said the total number of layoffs remains fluid.

The company did not immediately respond to a Reuters request for comment.

As of Dec. 31 last year, Amazon had more than 1.6 million full-time and part-time employees and had recently said it would freeze hiring to corporate workforce for the next few months.

The news comes just weeks after Amazon warned of a slowdown in growth for the busy holiday season when it generates the highest sales, saying consumers and businesses had less money to spend due to rising prices.

Amazon is the latest U.S. company to make deep cuts to its employee base to brace for a potential economic downturn.

Last week, Facebook-parent Meta Platforms said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs. Others include Elon Musk-owned Twitter Inc, Microsoft Corp and Snap Inc.

Shares of Amazon, which have lost about 40% of their value so far this year amid a broader tech selloff, briefly pared losses and were last trading down 2.4% at $98.38.

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