Amazon to lay off thousands of employees -source

Date:

Nov 14 (Reuters) – Amazon.com Inc (AMZN.O) plans to lay off about 10,000 employees in business and technology roles starting this week, a person familiar with the matter said Monday, in what would amount to the largest such reduction to date.

The cuts, previously reported by the New York Times, would cut about 3% of Amazon’s workforce. The exact number may vary as companies within Amazon revise their priorities, the source told Reuters.

The online retailer plans to cut jobs in its appliance business, which makes voice-activated “Alexa” gadgets and home security cameras, as well as in its human resources and retail business, the person said. Amazon’s timetable for notifying staff remained unclear.

The source attributed the drop to the uncertain macroeconomic environment facing Amazon and other companies.

The news follows a wave of layoffs in the technology sector, which is wary of a recession after years of rapid hiring. Last week, Facebook parent company Meta Platforms Inc (META.O) said it would cut more than 11,000 jobs, or 13% of its workforce, to contain costs.

The Amazon logo is seen outside the JFK8 distribution center in Staten Island, New York, U.S., November 25, 2020. REUTERS/Brendan McDermid/File Photo

Seattle-based Amazon predicts a slowdown in sales growth ahead of the typically lucrative holiday season.

Speaking to reporters last month, Chief Financial Officer Brian Olsavsky said the company saw signs of tighter household budgets for shopping, and continued to struggle with high inflation and energy costs.

It has since said it would freeze incremental corporate hires for several months.

Amazon’s appliance division has posted an annual operating loss of more than $5 billion in recent years, the Wall Street Journal reported last week. The company has weighed in on whether to focus on new capabilities for Alexa when some customers use the voice assistant for just a few tasks, the report said.

Company-wide, taking into account warehouse and transportation jobs, which put Amazon’s workforce at more than 1.5 million as of September 30, the planned cuts amounted to less than 1% of the retailer’s workforce.

Shares of Amazon have lost more than 40% of their value this year. They were down 1.1% Monday afternoon to $99.67.

Reporting by Jeffrey Dastin in Palo Alto, California, and Tiyashi Datta and Nivedita Balu in Bengaluru Edited by Arun Koyyur and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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