Amazonia He reportedly plans to terminate his employmentlayoffs) to around 10,000 employees.
According to a New York Times source CnnTuesday (11/15), the layoffs are likely to start as early as this week.
The layoffs likely include staff working on Amazon devices (like its Alexa voice assistant), as well as people in retail and human resources, according to the report. However, the number of affected employees may change.
CNN was unable to independently confirm the report. That’s because Amazon didn’t respond to CNN’s request for comment earlier this week.
The Wall Street Journal also reported on Monday that Amazon would lay off thousands of workers, citing someone familiar with the matter.
Amazon is the latest addition to a string of tech companies that have announced significant layoffs in recent weeks. Last week, Facebook parent Meta announced it would layoff 11,000 employees.
The layoffs come amid economic uncertainty and a steep drop in demand. However, many tech giants have added staff during the pandemic.
Earlier this month, Amazon said it was holding a corporate hiring freeze “for the next few months,” citing economic uncertainty and “how many people we’ve hired” over the past few years.
Companies have rapidly increased the number of their employees during the pandemic as consumers have changed their shopping habits and spending through e-commerce.
In its latest earnings report, the company forecast that its earnings for the holiday quarter would be lower than analysts expected.
So far this straight year, Amazon shares are down more than 40% on the broader market crash.
The news of potential layoffs across various global e-commerce sites comes at an important time for the retail sector ahead of the holiday shopping season.
Despite recession fears and inflationary pressures, the US National Retail Federation expects sales to rise 6% to 8% year over year during the holiday shopping season.
(sfr)
