Amazon plans to lay off about 10,000 employees in corporate and tech jobs starting this week, The New York Times reported on Monday, citing people with knowledge of the matter. Job cuts will focus on the devices unit of the e-commerce giant, which houses the voice assistant Alexaas well as in his retail and human resources divisionaccording to the report, which also said the total number of layoffs remains variable.
The unit that houses Alexa posted an operating loss of more than $5 billion a year, with Amazon considering whether it should focus on adding new capabilities when customers use the device for only a few functions. The company did not immediately respond to a Reuters request for comment.
The layoffs represent about 3% of your corporate staffthe Times reported. Amazon had recently said it would freeze corporate hiring for the next several months.
The news comes just weeks after Amazon to warn of a slowdown in growth during the busy holiday season, when it generates the highest sales, saying that consumers and businesses had less money to spend due to rising prices.
Amazon is the latest US company to make deep cuts to its employee base to prepare for a possible economic downturn. In the past week, Facebook parent Meta said it would cut more than 11,000 jobs, or 13% of its workforce.to control costs. Other companies that announced cuts include Twitter, owned by Elon MuskMicrosoft and Snap.
Slowing economic growth and the rising cost of labor and transportation have hampered companies from hiring aggressively during the pandemic as e-commerce demand for cloud-based services increased. Now that consumer demand is being hit by rising prices and borrowing costs, many are considering cutting jobs.
Amazon shares, which have lost about 40% of their value so far this year, briefly pared losses and traded 2% lower.
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Twitter, Meta and now Amazon: the company founded by Jeff Bezos plans 10,000 layoffs