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Tuesday, May 30, 2023

Amazon will reportedly lay off about 10,000 employees starting this week.

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Starting this week, Amazon will lay off about 10,000 employees in its corporate and technology divisions, according to a report in The New York Times. Separately, The Wall Street Journal also cited sources saying the company plans to lay off thousands of employees. Amazon shares fell about 2% on Monday. The cuts will be the largest in the company’s history, according to the report, and will primarily affect Amazon’s device organization, retail, and human resources departments. The reported layoffs represent less than 1% of Amazon’s global workforce. , representing less than 3% of the company’s workforce. The report follows job cuts at other tech companies. Meta announced last week that he would lay off more than 13% of his workforce, meaning he has over 11,000 employees, while Twitter has laid off employees in the days following Elon Musk’s acquisition of the company for $44 billion. Approximately half of the employees were laid off.

Amazon reported 798,000 employees at the end of 2019, with 1.6 million full-time and part-time employees as of December 31, 2021, an increase of 102%. The New York Times said the total number of layoffs was “fluid” and could change. Amazon representatives did not immediately respond to a request for comment. The holiday shopping season is a very important time for Amazon, and it’s also a time when the company typically ramps up staff to meet demand. But Andy Jassy, ​​who took over as CEO in July 2021, is going into a cost-cutting mode to save cash as the company faces declining sales and a bleak global economy.

The company had previously announced plans to freeze hiring for corporate positions at its retail stores. In recent months, Amazon has shut down telemedicine services, done away with quirky projectors for video calls for kids, closed all but one of its call centers in the US, and eliminated mobile delivery robots. , closed and closed underperforming fixed chains, and canceled or moved some new services. warehouse location. Amazon reported its disappointing third-quarter October results, spooking investors and sending the stock down more than 13% from his. It was the first time since April 2020 that Amazon’s market cap fell below $1 trillion, and the report marks the second time this year that Amazon’s results were enough to trigger a double-digit percentage sale. Got The sell-off continued for days after the report, wiping out nearly all of the pandemic-induced surge in stock prices.

Amazon’s stock has fallen about 41% over the year, outpacing its 14% decline in the S&P 500 and facing its worst year since 2008.

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