Amazon may lay off 10,000 employees

15 Nov 2022 , 11:43 AM

According to sources cited by the New York Times on Monday, Amazon.com Inc. is set to fire up to 10,000 employees in corporate and technological positions starting this week.

According to the article, which also stated that the overall number of layoffs remains a moving target, "the layoff would centre on the e-commerce giant's devices unit, which contains voice-assistant Alexa, as well as its retail division and human resources," as per media reports.

Amazon follows a number of American businesses in drastically reducing their workforces in order to prepare for a possible economic slump.

By December 31, 2021, Amazon had roughly 1,608,000 full-time and part-time employees.

Last Monday, Meta Platforms announced it will reduce expenses by 13% by eliminating more than 11,000 jobs.

Recently, Amazon had been trying to keep its staff. The e-commerce giant increased the cash compensation cap for its tech employees by more than twice as much earlier this year, citing "a particularly competitive labour market."

According to a NYT article, 10,000 or about 3% of Amazon's corporate employees would lose their jobs.

However, earlier this year, as the pandemic's bullwhip broke, Amazon's growth dropped to the lowest rate in two decades. The company's initiatives to overinvest and expand quickly came at a hefty cost, and changes in consumer behaviour and high inflation hurt revenues.

Although growth in Amazon's most recent quarter saw a little improvement, the company has warned investors that growth could yet slow down.

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