Amazon is Apparently Planning to Lay Off Approximately 10,000 Employees Beginning Next Week

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Last Updated on November 15, 2022 by Bitfinsider

The New York Times reports that Amazon is planned to lay off around 10,000 business and technical staff beginning this week. Separately, The Wall Street Journal reported a person who stated that the corporation intends to lay off thousands of workers.

Monday’s closing price for Amazon shares was around 2% lower than the previous day’s.

According to the article, the cuts would be the largest in the company’s history and would mostly affect Amazon’s devices department, retail division, and human resources. The reported layoffs would affect fewer than one percent of Amazon’s global workforce and three percent of corporate personnel.

The report parallels staff reductions at other IT companies. In the days following Elon Musk’s $44 billion acquisition of Twitter, the firm fired off roughly half of its workforce.

Amazon claimed 798,000 employees by the end of 2019, but had 1.6 million full-time and part-time employees by the end of 2021, a growth of 102%. According to The New York Times, the total number of layoffs is “fluid” and subject to change.

Amazon’s holiday shopping season is crucial, and the corporation has typically doubled its workforce to match demand. In contrast, Andy Jassy, who assumed the role of CEO in July 2021, has been slashing expenses to conserve cash as the company faces sluggish sales and a bleak global economy.

The corporation has already indicated its intention to halt hiring for corporate positions within the retail division. In recent months, Amazon terminated its healthcare service, a unique video-calling projector for children, all but one of its U.S. call centers, its roving delivery robot, failing brick-and-mortar chains, and is closing, canceling, or delaying the opening of certain new warehouses.

Amazon posted dismal third-quarter earnings in October, which alarmed investors and led to a 13% share price decline. It was the first time since April 2020 that Amazon’s market cap went below $1 trillion, and it was the second time this year that Amazon’s results prompted a double-digit percentage sell-off. The sell-off persisted for days following the release of the study and wiped out nearly all of the stock’s previous increase.

Amazon stock is on pace for its worst year since 2008, with a 41% decline compared to a 14% decline in the S&P 500.

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