Amazon to lay off thousands of employees -source

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

The cuts, reported earlier by the New York Times, would represent around 3% of Amazon’s corporate workforce. The exact number may vary as Amazon businesses refocus their priorities, the source told Reuters.

The online retailer plans to cut jobs at its device organization, which makes voice-enabled “Alexa” gadgets and home security cameras, as well as at its human resources and retail divisions, a said the person. Amazon’s timeline for notifying staff is unclear.

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

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

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

Seattle-based Amazon predicts slower sales growth for the usually lucrative holiday season.

In a call with reporters last month, Chief Financial Officer Brian Olsavsky said the company had seen signs of household budgets tightening for purchases and continued to struggle with high inflation and energy costs. .

It’s been since said this would freeze additional corporate hiring for several months.

Amazon’s devices unit has recorded an annual operating loss of more than $5 billion in recent years, the wall street journal reported last week. The company considered whether to focus on new features for Alexa when some customers only use the voice assistant for a few tasks, the report said.

Company-wide, including warehouse and transportation jobs, which brought Amazon’s workforce to more than 1.5 million as of September 30, the planned reductions were less than 1% of the workforce. retailer.

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

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

Our standards: The Thomson Reuters Trust Principles.

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