- Facing a slowdown in sales, Amazon plans to lay off about 10,000 employees
- Amazon did not respond to a request for comment.
- The reported job cuts at Amazon come after other tech companies have axed their workforces, including Meta, Snap and Twitter.
According to rumors, Amazon plans to lay off approximately 10,000 employees, the largest drop in the company’s history.
The New York Times stated that the mass layoffs might begin as early as this week and will target Amazon’s devices group, retail division, and human resources, citing anonymous sources with knowledge of the situation.
Amazon did not confirm the layoffs immediately to USA TODAY.
Approximately 3% of Amazon’s corporate workers and fewer than 1% of its global workforce would be affected by the rumored layoffs. The corporation employs over 1.5 million people worldwide.
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According to a recent report by market analysis firm Finbold, Amazon lost 45 percent of its value over the past year, from $1.6 trillion on January 1 to $939 billion on November 3. Other corporations, like Apple and Microsoft, experienced valuation declines.
Petra Moser, an economics professor at New York University, told USA TODAY that the decline in market value would likely be felt through employment.
In recent weeks, other prominent technology corporations have announced similar initiatives. Thousands of Twitter employees were laid off at the beginning of November, one week after Elon Musk’s acquisition of the firm.
A few days later, Facebook’s parent company, Meta, announced it will lay off more than 11,000 employees, or approximately 13% of its staff, “in order to become a leaner and more effective organization.”
Amazon has revealed that there would be millions of discounts available during its 48-hour Black Friday sale, which begins on November 24.
Amazon reported in its third-quarter financial results on October 27 that its net sales had climbed by more than 15% compared to the same period previous year, while its operating income declined to $2.5 billion from $4.9 billion.
The New York Times reported on October 4 that Amazon would halt corporate hiring in its retail business for the remainder of the year. However, Amazon has stated that it plans to hire approximately 150,000 people for open seasonal, full-time, and part-time roles “across its operations network in the U.S. to help deliver customers during the holidays.”
