January 31, 2023

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Amazon It began laying off employees in its corporate and technical workforce on Tuesday as CEO Andy Jassy ramped up efforts to rein in costs.

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The company informed workers in several divisions, including the Alexa and Luna cloud gaming units, that they were being let go, according to LinkedIn posts from Amazon employees who said they were affected.

Amazon is aiming to eliminate about 10,000 jobs, mostly in retail, appliances and human resources. new York Times Reported on Monday. According to the Times, that number remains fluid as the cuts are being implemented by individual teams.

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As of Tuesday afternoon, Amazon had not sent any companywide communication about the planned layoffs, according to a person familiar with the matter who asked not to be named for confidentiality reasons, sparking frustration among employees.

Amazon representatives declined to comment.

In recent weeks, Amazon also began laying off some contract employees who worked in recruiting roles for its advertising, internal operations and Fire TV divisions, according to people with knowledge of the cuts.

One employee, who asked to remain anonymous, said Amazon informed him earlier this month that it would not be renewing his contract. Last month, she was in talks to take on a full-time role in Amazon’s consumer department, but her interview was abruptly canceled due to ongoing restructuring, she was told.

Jassy has aggressively cut expenses at the company in recent months as it weathers a weak economy and slowing growth in its retail business. Previously, the company said it would freeze hiring among its corporate workforce, and it has paused some pilot projects, as well as choosing to close, delay or cancel new warehouse locations.

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So far, it had managed to avoid mass layoffs by giving employees affected by project closures the opportunity to move to other divisions within the company.

The job cuts represent a reversal for Amazon, which less than a year ago could not find enough workers to staff its warehouses in a hot labor market and is still battling a pandemic-fueled hiring spree. was among. It nearly doubled its workforce from 798,000 employees to 1.6 million globally between the end of 2019 and the end of 2021.

Since then, it has tended to slow growth in the workforce as consumers return to physical stores, and its retail business is no longer growing as rapidly as it has been in recent years. Amazon CFO Brian Olsavsky said last month that the company is seeing signs that consumers are feeling the sting of inflation.

“We are preparing for a period of slower growth, which includes weaker than expected guidance for the current period,” Olsavsky said on a call with reporters following the company’s third-quarter earnings results.

The company still plans to bring on 150,000 employees for the holiday shopping period, the same number of employees it said it would add last year.

Job cuts after years of unbridled growth are hitting the tech sector hard. facebook parent meta laid off 13% of its employees last week, while Twitter, Shopify, sales force And Stripe has announced cuts, too.

The expected layoffs would represent the largest cuts in the company’s 28-year history. in 2001After the dot-com bubble burst, Amazon cut 1,300 jobs, or 15% of its workforce.

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watch: Amazon is preparing to lay off thousands of employees