Amazon is planning to fire thousands of employees and implement cost-cutting measures as the last few quarters haven’t been profitable, according to reports. The company could fire as many as 10,000 employees starting as soon as this week.
If the total number of layoffs stays around 10,000, it would be the biggest layoff in the history of Amazon. It would represent less than 1 percent of the workforce of a company that employs over 1.6 million globally.
According to USA media sources, The job cuts will target the devices group, including the one responsible for the Alexa voice assistant, along with the retail division and human resources.
Amazon, after a months-long review, has cautioned employees in some unprofitable units to look for other opportunities within the company.
The report comes just weeks after the e-commerce giant warned of a slowdown in growth for the busy holiday season, a period when it used to generate the highest sales. Amazon said this was because consumers and businesses have less money to spend due to rising prices.
The world’s largest online retailer has spent much of this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Amazon delayed warehouse openings and froze hiring in the retail group.
Amazon Chief Executive Officer Andy Jassy has vowed to streamline operations amid slowing sales growth and economic uncertainty. Amazon is the latest technology company to make deep cuts to its employee base to brace for a potential economic downturn.
Remember that Last week, Twitter cut roughly 50% of its workforce and executives following its sale to Elon Musk. Facebook’s parent company Meta also fired 11,000 employees.
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