According to unidentified people familiar with the situation, US e-commerce giant Amazon is scheduled to dismiss up to 10,000 employees this week, according to The New York Times.
The revelation of prospective job losses comes just days after Facebook-parent Meta and Twitter both announced major layoffs, delivering obvious signs that the tech sector is bracing for the impending recession. Snap revealed intentions to lay off 20% of its workers in August.
The layoffs are said to affect Amazon’s Alexa business, as well as the retail and human resources businesses. According to the Wall Street Journal, Alexa Group, the maker of the Echo hardware and accompanying software, has been losing $5 billion per year in operational losses in recent years.
Amazon announced a corporate hiring freeze earlier this month, citing an “uncertain and challenging” economic environment.
The 10,000 positions represent around 1% of the company’s 1.5-million global employees. According to the New York Times, the ultimate number of planned cutbacks may alter.
Amazon has struggled in recent quarters to address the decline in its retail sector, which came following the excellent success during the peak of the Covid-19 outbreak.
The corporation is trying to reduce its warehouse network and lease out space within the facilities. Amazon has also shut down other businesses, including its principal health-care service, Amazon Care.
The online retailer reported flat earnings in October, missing revenue expectations and issuing lower fourth-quarter guidance than analysts predicted. Year to date, Amazon stock is down 40%.
