Amazon is about to lay off 10,000 workers this week: Report

Amazon (AMZN) is preparing to lay off about 10,000 employees as soon as this week, The New York Times reported on Mondaycited unnamed sources familiar with the matter.

The layoffs come as the tech industry continues to struggle amid a slowing economy, rising interest rates and rising inflation. Facebook’s parent company Meta and Twitter also laid off thousands of employees this month.

The layoffs will affect Amazon’s Alexa business, as well as the company’s human resources and retail divisions, according to The Times. Amazon’s Alexa Corporation, which makes Echo hardware and related software, loses up to $5 billion a year, The Wall Street Journal reportedcite internal documents reviewed by the article.

The 10,000 jobs represent about 1% of Amazon’s 1.5 million global workforce. The Times reports that the final number of layoff plans could change between now and when they are announced. Amazon Notice of hiring freeze on November 3.

Amazon has struggled in recent quarters, as sales in the company’s retail division slowed relative to its operations during the height of the pandemic. The company poured huge sums into building its fulfillment network that included hiring thousands of employees and building warehouses.

The e-commerce giant is looking to expand its network of warehouses and rental spaces inside facilities. The company also closed other services including Amazon Careits primary health care services.

Amazon reports lackluster October earnings, missed analysts’ revenue expectations and gave fourth-quarter guidance that came in below analysts’ expectations. Amazon shares are down 40% so far.

Amazon joins a more and more technology companies fired employees or started to stop hiring. Social media giant Meta laid off 11,000 workers last week alone amid a slump in ad sales, while Twitter cut 3,700 jobs after billionaire Tesla CEO Elon Musk took over. Snap laid off about 20% of its workforce, while Lyft cut 683 employees.

Amazon’s Alexa division is designed to attract customers to subscribe to the company’s Prime services. Devices include Amazon’s Echo, Echo Dot, Echo Show, and countless home automation products that interact with voice assistants.

The company has been pouring money into the initiative for years, developing a host of new gadgets that range from Alexa-compatible security cameras to smart glasses that let you access Alexa, make calls, and listen to music. .

But e-commerce sales are slumping as consumers return to physical stores or cut spending, forcing Amazon to retool its business and improve profits.

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