Amazon starts cutting thousands of workers

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After decades of near-constant expansion, Amazon began laying off corporate employees on Tuesday, becoming the latest tech giant to downsize in recent weeks.

Amazon is expected to cut about 10,000 workers, or about 3% of its workforce. The company began communicating the layoffs to employees on Tuesday afternoon, according to people familiar with the matter who spoke on condition of anonymity to describe sensitive matters.

Amazon plans to lay off thousands of corporate employees

Amazon did not respond to a request for comment.

Hours after the layoffs began, employees began posting on LinkedIn and the anonymous job app Blind to say they had been laid off and were looking for new jobs.

Within Amazon, employees say they were given little notice of the layoffs – they received no company-wide communication or notice, said two company employees who spoke undercover anonymity to discuss sensitive issues.

The cuts will mainly affect areas such as retail, human resources and appliances. Earlier this month, Amazon announced a sweeping hiring freeze among its white-collar workers that would last at least “for the next few months.”

The cuts are expected to be the e-commerce giant’s biggest round of layoffs in its history, marking a big turnaround for the company which has been hiring aggressively for the past decade.

Amazon is expected to continue hiring at its warehouses, where it is adding staff to support its busy holiday season.

In recent weeks, Twitter, Salesforce, Facebook’s parent company Meta and other tech companies have announced major layoffs or hiring freezes, after months of warning signs, such as tech start-ups. find it harder to raise capital.

Dan Ives, financial analyst at Wedbush Securities, told the Washington Post on Monday that the layoffs could signal an impending recession. Tech companies, he said, “are hugely bloated, and they’re not designed for a softer economy as we see it.”

Meta cut 11,000 jobs, or 13% of its workforce last week. Ride-sharing service Lyft also lost 13% of its staff. Fintech company Stripe and real estate market Zillow have also announced layoffs since October.

Earlier this month, Twitter CEO Elon Musk halve the staff of his company shortly after acquiring the social network.

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The massive layoffs represent a sharp reversal for Amazon, which has grown for much of its history. At the end of September, it employed more than 1.5 million workers, an increase of 5% compared to the previous year. (Amazon founder Jeff Bezos owns The Post.)

Amazon has seen huge growth during the coronavirus crisis, with people spending more time at home and increasingly shopping online. In May, the company admitted that it had hired its warehouses too quickly to keep pace with demand, which by then was cooling.

Additionally, in the face of high inflation and increasingly budget-conscious consumers, Amazon released a disappointing forecast for the holiday season — usually its peak time of the year — sending its stock fell last month. from Amazon the stock fell nearly 39% year-to-date, although it still has a market capitalization over $1 trillion.

Mandy Dean, 39, was a contract recruiter in Chicago for Amazon Luna, the company’s cloud gaming platform. The company let her contract expire in September, although she said she was on track for a full-time interview.

It wasn’t a complete surprise as Dean said she saw the signs in August as the software engineer openings she was responsible for filling dwindled.

“It was a bad time for it all to happen,” Dean said. “I really enjoyed working for Amazon. I liked the culture, the people I worked with, the work itself. It was a difficult situation, but I couldn’t do anything.

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