Amazon plans to lay off thousands of employees – source

Amazon plans to lay off thousands of employees – source

Nov 14 (Reuters) – Inc (AMZN.O) plans to lay off around 10,000 employees in business and technology roles starting this week, a person familiar with the matter said on Monday, marking the largest such reduction til today.

The cuts, previously reported by the New York Times, would cut about 3% of Amazon’s workforce. The exact figure may vary as companies within Amazon review their priorities, the source told Reuters.

The online retailer plans to cut jobs in its device 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 timeframe for informing employees remained unclear.

The source attributed the decline to the uncertain macro environment for Amazon and other companies.

The news follows a wave of layoffs across the tech sector, which is reeling from a recession after years of quick hiring. Just last week, Facebook parent Meta Platforms Inc (META.O) announced it was cutting more than 11,000 jobs, or 13% of its workforce, to contain costs.

The Amazon logo is seen in front of its JFK8 distribution center in Staten Island, New York, the United States, 25 November 2020. REUTERS/Brendan McDermid/File Photo

Seattle-based Amazon is forecasting a slowdown in sales growth during the typically lucrative holiday season.

Speaking to reporters last month, Chief Financial Officer Brian Olsavsky said the company is seeing signs of tighter household budgets to shop and continues to struggle with high inflation and energy costs.

It has since announced that it will freeze incremental company hires for several months.

Amazon’s device division has posted an annual operating loss of more than $5 billion in recent years, the Wall Street Journal reported last week. The company has weighed whether to focus on new features for Alexa if some customers only use the voice assistant for a few tasks, the report said.

Company-wide, including warehouse and transportation jobs, which pushed Amazon’s workforce to more than 1.5 million as of Sept. 30, the planned cuts amounted to less than 1% of the retailer’s workforce.

Amazon’s stock has lost more than 40% of its value this year. They fell 1.1% to $99.67 on Monday afternoon.

Reporting by Jeffrey Dastin in Palo Alto, California and Tiyashi Datta and Nivedita Balu in Bengaluru. Edited by Arun Koyyur and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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