Amazon to lay off thousands of employees -source

Nov 14 (Reuters) – Amazon.com Inc ( AMZN.O ) plans to lay off around 10,000 employees in corporate and technology roles starting this week, a person familiar with the matter said on Monday, in what would be the biggest such layoff. Reduction to date.

The cuts, previously reported by the New York Times, would represent about 3% of Amazon’s corporate staff. The exact number could vary as Amazon businesses evaluate their priorities, the source told Reuters.

The online retailer plans to eliminate jobs in its devices organization, which makes voice-controlled “Alexa” gadgets and home security cameras, as well as in its human resources and retail divisions, the person said. Amazon’s time frame for informing staff remained unclear.

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The source attributed the reduction to the uncertain macroeconomic environment faced by Amazon and other companies.

The news follows a wave of layoffs across the technology sector, which is reeling from recession after years of rapid hiring. Last week, Facebook parent Meta Platforms Inc ( META.O ) said it would cut more than 11,000 jobs, or 13% of its workforce, to rein in costs.

The Amazon logo is seen outside its JFK8 distribution center in Staten Island, New York, US. it. November 25, 2020. REUTERS/Brendan McDermid/File Photo

Seattle-based Amazon is predicting a slowdown in sales growth for the typically lucrative holiday season.

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On a call with reporters last month, Chief Financial Officer Brian Olsavsky said the company saw signs of tight household budgets for shopping, and it continued to wrestle with high inflation and energy costs.

It has since said it would freeze incremental corporate hiring for several months.

Amazon’s devices unit in recent years has posted an annual operating loss of more than $5 billion, the Wall Street Journal reported last week. The company was weighing whether to focus on new capabilities for Alexa when some customers use the voice assistant for only a few tasks, the report said.

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Company-wide, taking into account warehouse and transportation jobs, which made Amazon’s head count more than 1.5 million as of September 30, the planned cut amounted to less than 1% of the retailer’s workforce.

Amazon shares have lost more than 40% of their value this year. They were down 1.1% at $99.67 on Monday afternoon.

Reporting by Jeffrey Dastin in Palo Alto, California, and Tiyashi Datta and Nivedita Balu in Bengaluru Editing by Arun Koyyur and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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