Amazon plans to lay off about 10,000 people over the next few days, according to a New York Times report Monday, citing people familiar with the matter. The move, if confirmed, would follow mass workforce reductions by Twitter and parent Facebook Meta.
The layoff will affect representation of roughly three percent of the e-commerce giants’ employees and less than one percent of the global workforce of more than 1.5 million made up primarily of hourly workers.
“The cuts will focus on the organization of Amazon devices, including the Alexa voice assistant, as well as in the retail and human resources division,” says the report, which also said the total number of layoffs remains variable.
As of December 31 of last year, Amazon had about 1,608,000 full-time and part-time employees.
The report also comes on the day that its founder, Jeff Bezos, told CNN that he plans to give away the majority of his $124 billion net worth to charity during his lifetime.
Trouble was brewing at Amazon according to a New York Times report as the tech giant cut staff by about 80,000 people between April and September, primarily reducing its hourly headcount through significant attrition.
According to the report, Amazon froze hiring for several smaller teams in September. In October, it stopped filling more than 10,000 open positions in its core retail business. Two weeks ago, it froze corporate hiring across the company, including its cloud computing division, for the next few months. The news came so suddenly that recruiters didn’t receive talking points about the job candidates until about a week later.
The move, which comes just before Christmas when the giant appreciates stability, shows how quickly a faltering global economy has put pressure on it to downsize a business that has been overstaffed or underperformed for years.
After recording its “most profitable period ever” during the COVID-19 pandemic years, Amazon has seen its lowest growth rate in two decades.
Amazon is joining the bandwagon of US companies making deep cuts to their employee base to prepare for a potential economic downturn.
Last week, Facebook subsidiary Meta Platforms said it would cut more than 11,000 jobs, or 13% of its workforce, to curb costs.
The new billionaire owner of Twitter Elon Musk Cut the social media workforce by half.
(With inputs from Reuters, PTI)
Read all files The latest business news over here