Amazon reportedly plans to lay off nearly 10,000 workers
The online retailer follows Meta in making deep cuts to its workforce
14 November 2022 - 23:27
byJeffrey Dastin
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The Amazon logo at its JFK8 distribution centre in Staten Island, New York, the US, November 25 2020. Picture: BRENDAN McDERMID/REUTERS
Amazon.com is planning to lay off about 10,000 employees in corporate and technology roles beginning this week, a person familiar with the matter said on Monday, in what would amount to its biggest such reduction to date.
The cuts, earlier reported by the New York Times, would represent about 3% of Amazon's corporate staff. The exact number may vary as businesses within Amazon review their priorities, the source told Reuters.
The online retailer plans to eliminate jobs in its devices organisation, which makes voice-controlled Alexa gadgets and home-security cameras, as well as in its human resources and retail divisions, the person said. Amazon’s time frame for informing staff remained unclear.
The source attributed the reduction to the uncertain macroeconomic environment faced by Amazon and other companies.
The news follows a wave of layoffs across the technology sector, which is wary of recession after years of rapid hiring. Just last week, Meta Platforms, formerly Facebook, said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs.
Seattle-based Amazon is predicting a slowdown in sales growth for the typically lucrative holiday season.
On a call with reporters last month, CFO Brian Olsavsky said the company saw signs of tighter household budgets for shopping, and it continued to wrestle with high inflation and energy costs.
It since has said it would freeze incremental corporate hiring for several months.
Amazon’s devices unit in some recent years has posted an annual operating loss of more than $5bn, the Wall Street Journal reported last week. The company has weighed whether to focus on new capabilities for Alexa when some customers use the voice assistant for just a few tasks, the report said.
In the US, taking warehouse and transportation jobs into account, which made Amazon’s headcount more than 1.5-million as of September 30, the planned cuts amounted to less than 1% of the retailer’s workforce.
Shares of Amazon have lost more than 40% of their value this year. They were down 1.1% at $99.67 on Monday afternoon.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Amazon reportedly plans to lay off nearly 10,000 workers
The online retailer follows Meta in making deep cuts to its workforce
Amazon.com is planning to lay off about 10,000 employees in corporate and technology roles beginning this week, a person familiar with the matter said on Monday, in what would amount to its biggest such reduction to date.
The cuts, earlier reported by the New York Times, would represent about 3% of Amazon's corporate staff. The exact number may vary as businesses within Amazon review their priorities, the source told Reuters.
The online retailer plans to eliminate jobs in its devices organisation, which makes voice-controlled Alexa gadgets and home-security cameras, as well as in its human resources and retail divisions, the person said. Amazon’s time frame for informing staff remained unclear.
The source attributed the reduction to the uncertain macroeconomic environment faced by Amazon and other companies.
The news follows a wave of layoffs across the technology sector, which is wary of recession after years of rapid hiring. Just last week, Meta Platforms, formerly Facebook, said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs.
Seattle-based Amazon is predicting a slowdown in sales growth for the typically lucrative holiday season.
On a call with reporters last month, CFO Brian Olsavsky said the company saw signs of tighter household budgets for shopping, and it continued to wrestle with high inflation and energy costs.
It since has said it would freeze incremental corporate hiring for several months.
Amazon’s devices unit in some recent years has posted an annual operating loss of more than $5bn, the Wall Street Journal reported last week. The company has weighed whether to focus on new capabilities for Alexa when some customers use the voice assistant for just a few tasks, the report said.
In the US, taking warehouse and transportation jobs into account, which made Amazon’s headcount more than 1.5-million as of September 30, the planned cuts amounted to less than 1% of the retailer’s workforce.
Shares of Amazon have lost more than 40% of their value this year. They were down 1.1% at $99.67 on Monday afternoon.
Reuters
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