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| After Twitter and Meta ... Amazon could lay off 10000 employees |
Amazon plans to lay off nearly 10,000 employees from its business and technology divisions starting this week, according to a report in the New York Times on Monday.
Separately, the Wall Street Journal reported that the company plans to lay off thousands of employees, a person familiar with the matter said.
Amazon's planned layoffs will be the largest in the company's history and will affect key divisions: hardware, retail, and human resources. The reported layoffs will represent less than 1% of Amazon's global workforce.
News of Amazon's plans to cut thousands of jobs follows similar moves by other tech companies, with Meta announcing last week that it would lay off more than 13% of its workforce, or more than 11,000 employees, while Twitter expects layoffs April 44 Elon Musk's Dollar. Nearly billions of dollar layoffs, the company bought out half of its employees.
In late 2019, Amazon announced it had reached 798,000 employees before announcing 1.6 million full-time and part-time employees in December 2021.
The New York Times said the total number of layoffs remains volatile and subject to change.
The year-end shopping season is crucial for Amazon, and usually when the company is adding employees to meet demand. However, since taking office in July 2021, CEO Andy Gacy has sought to cut costs to preserve liquidity as the company faces declining sales in a stagnant global economy.
The company previously announced plans to freeze the hiring of retailers. In recent months, Amazon has shut down its telemedicine service, shut down the monitor that allowed children to video call their parents, closed call centers in the US, eliminated all but one of its roaming delivery bots, and shut down poorly performing channels. Some new warehouse locations have been closed, canceled or delayed.
In October, Amazon reported disappointing third-quarter results, unnerving investors and sending shares down more than 13%.
It's the first time since April 2020 that Amazon's market capitalization has fallen below $1 trillion, after Amazon's poor performance doubled multi-day stock sales and wiped out nearly all stocks. The company's stock price rose during the outbreak of the novel Corona.
Amazon shares are down about 41% this year and heading for their worst year since 2008.