December 9, 2023

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Amazon is stopping hiring for corporate roles in its retail business, according to a report published Tuesday. new York Times,

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The company confirmed the accuracy of the report to CNBC.

Amazon instructed recruiters to close all open job postings for those roles in the coming days, and recommended that they cancel some recruitment activities, such as phone calls to screen new candidates, The Times reported citing internal communications.

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Amazon spokesman Brad Glasser said the retail giant has a significant number of open roles across the company.

“We have many different businesses in different stages of growth, and we expect to adjust our recruitment strategies in each of these businesses,” Glasser said in a statement.

Amazon is the latest company to reevaluate its hiring plans amid concerns of an economic slowdown. Several companies, including Google, Apple and Meta, have announced that they will slow down or temporarily stop hiring altogether. Companies are also looking for ways to cut costs to make up for potential bottlenecks.

Amazon CEO Andy Jesse has acted swiftly to rein in costs as the company grapples with slow growth in its core retail business, which still accounts for the lion’s share of Amazon’s revenue.

Retail business enjoyed breakneck growth during the COVID-19 pandemic as consumers avoided visits to physical stores and turned to online retailers. In early 2022, e-commerce spending began to decline, and in the first quarter, Amazon reported its slowest rate of revenue growth since the dot-com bust in 2001.

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Jesse has assured investors he is focused on returning to “healthy levels of profit” after slowing retail sales and rising costs in Amazon’s earnings. In recent months, Amazon has closed or canceled the launch of new facilities, and is delaying the opening of some new buildings because its pandemic-driven expansion has left it with too much warehouse space.

It has also closed almost all of its US call centers to save on real estate. bloomberg informed of.

The company is also struggling with too many employees after going on a pandemic recruitment spree. In Second quarterAmazon reduced its workforce from 99,000 to 1.52 million employees.

watch: Watch CNBC’s full interview with Amazon CEO Andy Jesse on the first annual letter to shareholders