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12° Nicosia,
02 December, 2022
 

Amazon announces immediate layoffs of 10,000 workers

The company is reducing its workforce by 3% as consumers cut back on purchases

Amazon plans to lay off approximately 10,000 employees from administrative and other positions in its technology departments. According to a source familiar with the situation, the procedures will begin later this week. If the aforementioned staff reductions, which were first reported in an article in The New York Times, occur, they will be the largest in the company's history. They will account for approximately 3% of Amazon's workforce. According to Reuters, the exact number may vary as individual businesses within the group consider their priorities.  It is worth noting that the organization, which was founded by business tycoon and billionaire Jeff Bezos, is now joining the chorus of tech behemoths that are drastically reducing their workforce. Meta Platforms, Facebook's parent company, has announced that it will cut more than 11,000 jobs, or 13% of its workforce, in order to cut costs and prepare for an impending recession. Mark Zuckerberg, the founder of Facebook, apologized for his mistakes and overinvestment in the Meta Universe, a type of digital universe with virtual user characters. Many technology experts believed that the effects of the pandemic, as well as the proportionally higher engagement of users with digital media, would be permanent.

According to Reuters, the e-commerce giant Amazon intends to cut jobs in its device manufacturing arm, which produces voice-controlled units such as "Alexa" and home security cameras, as well as its human resources and retail divisions. It's unclear when staff will be briefed on what's going on. According to Reuters, the drastic cut is due to the uncertain macroeconomic environment in which Amazon and other companies operate.

Furthermore, the latter anticipates a slowdown in sales growth during the traditionally profitable Christmas and New Year's holiday season. In a conference call with reporters last month, Chief Financial Officer Brian Olshavsky stated that the company has discovered that households are keeping much tighter budgets and have tighter spending margins, as well as the impact of high inflation and energy costs. Finally, the Wall Street Journal reported last week that Amazon's appliance division had annual operating losses of more than $5 billion in recent years.

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