December 4, 2022

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Amazon lays off thousands of employees from its sources

Amazon lays off thousands of employees from its sources

November 14 (Reuters) – Amazon.com Inc (AMZN.O) It plans to lay off about 10,000 employees in corporate and technology roles starting this week, a person familiar with the matter said Monday, in what may amount to its largest such cut yet.

Cuts, I mentioned earlier before New York times, will represent about 3% of Amazon employees. The source told Reuters that the exact number may vary as companies within Amazon review their priorities.

The online retailer plans to cut jobs at its hardware organization, which makes voice-controlled “Alexa” gadgets and home security cameras, as well as in its human resources and retail departments, the person said. Amazon’s timeline for informing employees remained unclear.

The source attributed the decline to the uncertain macroeconomic environment Amazon and other companies are facing.

The news comes on the heels of a wave of layoffs across the tech sector, which is worried about a recession after years of rapid hiring. Just last week, Facebook’s Meta Platforms Inc (META.O) It said it would cut more than 11,000 jobs, or 13% of its workforce, to curb costs.

The Amazon logo appears outside the JFK8 distribution center in Staten Island, New York, US, November 25, 2020. REUTERS/Brendan McDermid/File Photo

Seattle-based Amazon expects a slowdown in sales growth in the usually lucrative holiday season.

On a call with reporters last month, Chief Financial Officer Brian Olsavsky said the company had seen signs of tightening home shopping budgets, and continued to grapple with rising inflation and energy costs.

since then He said The gradual hiring of companies will be frozen for several months.

Amazon’s hardware unit has in some recent years recorded an annual operating loss of more than $5 billion, The Wall Street Journal I reported last week. The report said the company considered whether to focus on the new capabilities of Alexa when some customers use the voice assistant for a few tasks.

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Companywide, taking into account warehouse and transportation jobs, which put Amazon’s workforce over 1.5 million as of September 30, the planned cuts amounted to less than 1% of the retailer’s workforce.

Amazon shares have lost more than 40% of their value this year. They fell 1.1% to $99.67 on Monday afternoon.

Additional reporting by Jeffrey Dustin in Palo Alto, California, Tayashi Datta and Nivedita Palu in Bengaluru; Editing by Arun Koyor and Matthew Lewis

Our criteria: Thomson Reuters Trust Principles.