Amazon plans to lay off about 10,000 employees in corporate and technology roles starting this week, according to a report The New York Times. Separately, The Wall Street Journal also citing a source who said the company plans to lay off thousands of employees.
Amazon shares closed down about 2% on Monday.
According to the report, the cuts will be the largest in the company’s history and will primarily affect Amazon’s device organization, retail division and human resources. The reported layoffs represent less than 1% of Amazon’s global workforce and 3% of corporate employees.
The report follows downsizing at other technology firms. Meta announced last week that it is laying off more than 13% of its staff, or more than 11,000 employees, and Twitter has laid off roughly half of its workforce in the days since Elon Musk bought the company for $44 billion.
Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., Tuesday, Oct. 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon reported 798,000 employees at the end of 2019, but as of December 31, 2021, there were 1.6 million full-time and part-time employees, a 102% increase. The New York Times said the total number of layoffs “remains unchanged” and is subject to change.
An Amazon representative did not immediately respond to a request for comment.
The holiday shopping season is a critical one for Amazon, and typically one where the company increased staff to meet demand. But Andy Jassy, who took upon himself as CEO in July 2021, has been in cost-cutting mode to conserve cash as the company faces slowing sales and a bleak global economy.
The company has already announced its plans freeze hiring for corporate roles in the retail business. In recent months, Amazon to close telemedicine services, has discontinued a fancy video calling projector for kids, all but one are closed of its call centers in the US, eliminated it a traveling robot delivery manthe shutter is insufficient brick chainsand is closed, canceled or delayed some new warehouse locations.
Amazon reported disappointing earnings in the third quarter in October, it spooked investors and sent shares down more than 13%. Amazon’s market cap fell below $1 trillion for the first time since April 2020, and for the second time this year, Amazon’s results were enough to trigger a double-digit percentage selloff. The sell-off continued for several days after the report and wiped out almost all of the pandemic surge in stocks.
Amazon shares are down about 41% for the year, more than the S&P 500’s 14% drop, and its worst year since 2008.
— CNBC’s Annie Palmer contributed to this report.
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