Amazon is likely to lay off several employees in India across all divisions as part of a global plan to deal with slowing sales as consumers scale back online shopping, according to a report.
Layoffs in India could be more than a few hundred employees out of its large workforce of about 100,000, however the exact number of people affected in India has yet to be determined, a economic times the report noted, citing multiple sources.
“The reduction is happening here (India) and discussions are going on about the numbers. There is a feeling that it could be relatively higher compared to peers like Facebook, which is owned by Meta, and others where India was not significantly affected,” said a person familiar with the matter. Eastern Time.
The New York Times It said in a report Monday that Amazon plans to lay off about 10,000 people in “corporate and technology jobs starting this week.” The 10,000 people who could be laid off represent about 3% of Amazon’s corporate employees and less than 1% of its global workforce of more than 1.5 million, according to the report.
In India, Amazon operates several businesses, including e-commerce, data center, and Prime Video. The layoffs in India would be in engineering and other departments, and could affect a relatively minor part of its total workforce in the country, according to ET.
Last month, Amazon’s weak third-quarter earnings, as well as disappointing fourth-quarter projections, sent the company’s shares tumbling by as much as 20%. Its third-quarter earnings were hit hard by unpredictable consumer buying habits and inflation.
Globally, technology companies have announced layoffs as part of their cost-cutting efforts. Last week, Meta CEO Mark Zuckerberg announced that the company has decided to reduce the size of its team by about 13%, cutting more than 11,000 jobs. Earlier this month, Elon Musk cut half of Twitter’s workforce, or about 3,700 jobs, at the social media company.
(YourStory has reached out to Amazon India for comment on the layoffs in India. The article will be updated accordingly with their response.)