Since the last few quarters haven't been financially beneficial, reports claim that Amazon plans to fire thousands of staff and apply cost-cutting methods. According to the New York Times, the corporation may dismiss up to 10,000 individuals commencing this week.
It would be the largest layoff in Amazon's record if the overall number of dismissals maintains at or close to 10,000. It would make up approximately less than 1% of a corporation with over 1.6 million employees worldwide.
The employment layoffs will primarily affect the retail department, human resources, and the electronics section, which includes the team in charge of the Alexa voice assistant. According to the Wall Street Journal, Amazon has encouraged staff in some underperforming units to search for new opportunities within the company following a months-long evaluation.
The study was released just a few weeks after the largest online retailer issued a warning about a slowdown in growth for the crucial holiday season, which is traditionally when it sees the most purchases. According to Amazon, this is a result of individuals and businesses having fewer funds to spend as a result of price increases.
The biggest international retailer in the world has spent a significant portion of this year making adjustments to a steep slowdown in e-commerce growth as consumers returned to their pre-pandemic routines. Amazon postponed the launch of warehouses and stopped recruiting for the retail division.
In light of the economy's instability and disappointing sales growth, Amazon CEO Andy Jassy has committed to reducing processes. Since the company's voice-activated products have yet to establish themselves as must-have accessories and frequently end up in customers' home essentials, the Alexa unit has long been prone to shrinking.
Following its "most profitable era on record" throughout the COVID-19 outbreak years, when internet consumer spending increased exponentially, “Amazon's growth slowed to the lowest rate in two decades, as the bullwhip of the pandemic snapped,” according to a New York Times story.
In order to prepare for a possible economic crisis, Amazon is the most recent technology firm to make significant reductions to its workforce. Over the past few weeks, redundancies have also been announced by several other technological organizations.
Following the sale of Twitter to Elon Musk last week, the company eliminated about 50% of its manpower. Meta, the parent company of Facebook, laid off 11,000 workers as well. In recent months, employees at Lyft, Stripe, Snap, and other digital companies have also been let go.
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