Amazon to Lay Off 10,000 Workers

Leading tech firms such as Twitter, Meta, and Microsoft have taken turns reducing their headcount due to the impending economic slump, and Amazon is set to do the same.

Amazon, an American multinational tech company with over 1.5 million employees, has reportedly announced its plan to lay off 10,000 workers to implement cost-cutting measures.

Well-informed officials have confirmed the job cut to be the largest recorded since the company launched. The proposed cut is about 3% of the company's corporate workforce and 1% of the total workforce.

Wall street journal reported that after a lengthy review, the e-commerce company has advised its workers in unproductive sections to redeploy to more effective units with exciting opportunities. 

The company has emerged as the latest tech firm to make a great downsize to its workforce in preparation for the looming recession. Meta dismissed 11,000 employees recently, and Twitter also laid off 50% of its workers in the previous week.

Per an anonymous source, the cutback will majorly affect corporate employees, affecting the retail division, human resources, and Amazon's devices organisation - Alexa. The source also stated that the layoff is less likely to happen at once, so it's not sure that it will be 10,000.

The Alexa division has long been prone to firing because the unit’s voice-activated devices are yet to make a significant impact and have not been effectively used by consumers, according to NDTV.

The e-commerce company implemented the job cut after simple strategies had earlier been used to reduce workers. As of September, the workforce had decreased by approximately 78,000 workers.

In October, the company paused hiring for roles in the retail division, while a wide range of teams was shut down, employees were also shuffled across advantageous areas to maintain productivity. 

Recently, for the first time, the tech company reportedly made a huge loss totaling $1trillion in market value as shoppers perceived the forthcoming economic turbulence and didn't spend as much as they used to.

Unlike the financial boom the company experienced during the COVID-19 pandemic, the Seattle-based tech company recorded lower net sales than expected in the last quarter of the previous year. This year, Amazon has lost over 40% of the value of its shares; on the 14th of November, they dropped by 1.1%, Reuters reported.

Like the other massive tech firms, this year, Amazon has made an intense effort to stay in business despite the economic decline and spiking interest rate. 

Earlier this month, the company made another big move by opening its first office - Amazon web services in Lagos, Nigeria to assist startups and organization of all sizes.

Andy Jassy, Amazon CEO, has reportedly pledged that while the economy is experiencing downtime, they are looking to strike a balance in investment without trading off their long-term goals.