Amazon ‘plans to cut 10,000 jobs’ – about 1% of its global workforce – this week
- Amazon executives will lay off 10,000 people in business and technology jobs this week, according to the New York Times
- The cuts will primarily target Amazon’s devices, as well as retail and human resources
- If the company goes ahead with its 10,000 job cuts, it would mean a loss of about 3 percent of Amazon’s corporate employees
- But it would be less than 1 percent of the global workforce of more than 1.5 million, which is primarily made up of hourly workers
Amazon executives will lay off thousands of workers with just weeks to go before the busy holiday season, as the tech sector braces for a recession.
According to the New York Timesthe online retailer plans to lay off 10,000 people in corporate and technology jobs as early as this week in what would be the largest job loss in the company’s history.
The cuts will primarily target Amazon’s devices, including voice assistant Alexa, sources familiar with the aforementioned discussions, as well as retail and human resources.
The move comes as the company reportedly lost $1 trillion in the past year after its stock plunged last week.
It remains unclear exactly how many jobs will be lost and whether the layoffs will affect only those in the United States or worldwide.
But if the company goes through with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon’s corporate employees — even though the cuts represent just less than 1 percent of its global workforce of more than 1.5 million, which consists primarily of employees per hour.
With the announcement, Amazon has become just the latest tech giant to announce massive layoffs — as Apple CEO Tim Cook says his company has also frozen hires.
Amazon CEO Andy Jassy would consider firing 10,000 employees
If the company goes ahead with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon’s corporate employees
The proposed layoffs mark a dramatic turn of events for Amazon, which had experienced its most profitable era during the COVID pandemic, when people around the world were forced to stay at home.
It doubled its workforce in just two years and put its huge revenues into new projects.
And earlier this year, in a bid to hire even more workers, Amazon more than doubled the cash compensation cap for tech workers, citing “a particularly competitive job market.”
But in their late September quarterly report, executives warned investors that growth could weaken — possibly to its lowest point since 2001 — amid record high inflation.
Last week, the Times reported, Amazon executives met with institutional investors as the stock plunged to its lowest level since the early days of the pandemic, costing the company $1 trillion.
Monday morning, the company was trading at $98.81, down 42 percent from the same time last year.
Jassy became the company’s CEO last year, trying to cut spending