According to reports, Amazon is preparing to fire thousands of office workers as a result of declining sales and concerns about a coming recession.
According to anonymous US media sources, the office staff of the e-commerce giant could lose roughly 10,000 employees.
On areas like e-commerce and personal gadgets, cuts are projected to have an impact.
The company had previously placed a hiring freeze, suspended some of its warehouse expansions, and issued a warning that it had overhired during the pandemic. It has also taken moves to isolate some portions of its operations by postponing plans for items like a personal delivery robot.
The business announced last week that cutting costs would be a priority in its annual review of business operations. “As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs,” the e-commerce company said in a statement.
The exact number of employment that will be terminated is still unknown, according to media reports.
Following an increase in revenue because of the epidemic, Amazon is now dealing with a decline in online sales. The corporation has remained concerned about the prediction despite a 15% gain in overall revenue in the most recent quarter as the slowdown spreads to other industries, including its long-profit-boosting cloud computing division, Amazon Web Services.
Jeff Bezos, the company’s founder and former CEO who is now chairman of the board announced the development.
Amazon has joined a lengthy list of other internet companies that have made layoff announcements in an effort to warn of an imminent financial crisis. The parent firm of Facebook, Instagram, and WhatsApp, Meta, is also on the list. Meta recently revealed plans to cut 11,000 positions, the greatest workforce decrease in company history.
Challenger, Gray & Christmas conducted a poll that examines such announcements and found that US-based tech companies have slashed more than 28,000 jobs altogether this year, more than double the amount from the previous year.