Amazon plans to lay off 10,000 people in the next few days: Report

tech giant Amazon plans to lay off 10,000 people in the coming days, adding to the bloodbath the tech world is witnessing after Twitter and Facebook parent Meta significantly cut its workforce.

The New York Times said in a report Monday that Amazon plans to lay off about 10,000 people in “corporate and technology jobs starting this week.”

Weather said the nyt In its report that the total number of layoffs remains “fluid,” 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 comprised primarily of hourly workers.

“The cuts will focus on Amazon’s device organization, including the Alexa voice assistant, as well as its retail division and human resources,” the report says.

The Amazon layoffs come just weeks after Twitter’s new owner, billionaire Elon Musk, cut the social media workforce in half and Meta announced it will lay off 13% of its workforce, or 11,000 employees.

The report of impending layoffs at Amazon also comes on the day that its founder, Jeff Bezos, said CNN he plans to donate the majority of his $124 billion net worth to charity during his lifetime.

Hard times had been brewing at Amazon as the nyt reported that from April through September, the tech giant cut its workforce by nearly 80,000 people, mainly cutting its hourly staff due to high turnover.

“Amazon froze hiring at 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 computing division in the cloud, for the next several months That news came so suddenly that recruiters didn’t receive talking points for candidates until nearly a week later, according to a copy of the talking points seen by The New York Times,” He said.

the nyt The report said Amazon’s “planned downsizing during the critical holiday shopping season, when the company has generally prized stability, shows how quickly the sour global economy has pressured it to cut businesses that have been overstaffed or underdelivered during years”.

After experiencing its “most profitable era on record” during the COVID-19 pandemic years, which saw exponential growth in consumer spending online, “Amazon’s growth slowed to the lowest rate in two decades.” , when the scourge of the pandemic cracked”.

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The report noted that during the pandemic years, as consumers flocked to online shopping and businesses flocked to Amazon’s cloud computing services, the tech giant doubled its workforce in two years and funneled its earnings on “expansion and experimentation to find the next big things.”

However, as the world recovered from the pandemic and consumers scaled back online purchases, Amazon faced “high costs from decisions to overinvest and expand rapidly, while changing shopping habits and high inflation hit sales”.

Amazon’s retail business covering its physical and online retail business and logistics operations has been “under strain” after increased demand and “breakthrough expansion” during the pandemic. NOW said. Amazon has said it has withdrawn expansion plans and has told investors it sees uncertainty with consumers.

“We are realistic that there are a number of factors weighing on people’s wallets,” Brian Olsavsky, the chief financial officer, told investors last month, according to the nyt report. He said the company wasn’t sure where the spending was headed, but “we’re ready for a variety of outcomes.”

the nyt The report added that in recent months, Amazon closed or scaled back several of its initiatives, including Amazon Care, which provided primary and urgent care after it couldn’t find enough customers; Scout, the icebox-sized home delivery robot that employed 400 people and, a subsidiary that sold sewing supplies for three decades.

For Amazon, the devices and Alexa have long been seen internally as at risk of cuts. the nyt The report said Alexa and related devices “became a top company priority as Amazon rushed to create the leading voice assistant, which leaders thought could succeed mobile phones as the next essential consumer interface.” “.

From 2017 to 2018, Amazon doubled its staff on Alexa and Echo devices to 10,000 engineers. “At one time, any engineer who got a job offer for other Amazon roles was also supposed to get an offer from Alexa,” he said.