Amazon is planning to put off roughly 10,000 workers in company and know-how roles starting this week, based on a report from The New York Instances. Individually, The Wall Road Journal additionally cited a supply saying the corporate plans to put off 1000’s of workers.
Shares of Amazon closed down about 2% on Monday.
The cuts could be the most important within the firm’s historical past and would primarily affect Amazon’s units group, retail division and human assets, based on the report. The reported layoffs would symbolize lower than 1% of Amazon’s world workforce and three% of its company workers.
The report follows headcount reductions at different tech companies. Meta introduced final week that it is shedding greater than 13% of its employees, or greater than 11,000 workers, and Twitter laid off roughly half its workforce within the days following Elon Musk’s $44 billion acquisition of the corporate.
Andy Jassy, chief government officer of Amazon.Com Inc., throughout the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.
David Ryder | Bloomberg | Getty Photos
Amazon reported 798,000 workers on the finish of 2019 however had 1.6 million full- and part-time workers as of Dec. 31, 2021, a 102% enhance. The New York Instances mentioned the entire variety of layoffs “stays fluid” and will change.
A consultant from Amazon didn’t instantly reply to a request for remark.
The vacation purchasing season is vital for Amazon, and often, one the place the corporate has elevated its headcount to fulfill demand. However Andy Jassy, who took over as CEO in July 2021, has been in cost-cutting mode to protect money as the corporate confronts slowing gross sales and a dismal world financial system.
The corporate has already introduced plans to freeze hiring for company roles in its retail enterprise. In latest months, Amazon shut down its telehealth service, discontinued a unusual, video-calling projector for teenagers, closed all however one of its U.S. name facilities, axed its roving supply robotic, shuttered underperforming brick-and-mortar chains, and is closing, canceling or delaying some new warehouse areas.
Amazon reported disappointing third-quarter earnings in October that spooked buyers and brought about shares to sink greater than 13%. It marked the primary time Amazon’s market cap fell beneath $1 trillion since April 2020, and the report was the second time this 12 months that Amazon’s outcomes have been sufficient to spark a double-digit proportion sell-off. The sell-off continued for days after the report and erased nearly the entire inventory’s pandemic surge.
Amazon inventory is down about 41% for the 12 months, greater than the 14% drop within the S&P 500, and is on tempo for its worst 12 months since 2008.
— CNBC’s Annie Palmer contributed to this report.