Amazon 'plans to cut 10,000 jobs' - roughly 1% of its global workforce - this week: Workers in its devices organization, retail division and human resources will be affected in the largest jobs cut in the company's history
- Amazon executives are set to lay off 10,000 people in corporate and technology jobs as early as this week, according to the New York Times
- The cuts will primarily focus on Amazon's devices, as well as its retail division and human resources
- If the company goes through with the proposal to cut 10,000 jobs, it would represent a loss of about 3 percent of Amazon's corporate employees
- But it would be less than 1 percent of its global workforce of more than 1.5million, which primarily comprises hourly workers
Amazon executives are set to lay off thousands of employees with just weeks to go before the busy holiday season as the tech sector braces for a recession.
According to the New York Times, the online retailer plans to layoff 10,000 people in corporate and technology jobs as early as this week in what would be the largest job cuts in the company's history.
The cuts will focus primarily on Amazon's devices, including voice-assistant Alexa, sources familiar with the discussions said, as well as its retail division and human resources.
The move comes as the company reportedly lost $1trillion over the year after its stock plummeted last week.
It remains unclear exactly how many jobs will be lost and whether the layoffs will only affect those in the United States or worldwide.
But if the company goes through with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon's corporate employees — though the cuts would only represent less than 1 percent of its global workforce of more than 1.5 million, which primarily comprises hourly workers.
With the announcement, Amazon has become just the latest tech giant to announce massive layoffs — as Apple CEO Tim Cook says his company has also frozen hiring.
The proposed layoffs mark a dramatic turn of events for Amazon, which had seen its most profitable era during the COVID pandemic when people throughout the world were forced to stay at home.
It doubled its workforce over the course of just two years, and funneled its massive earnings into new projects.
And earlier this year, in an effort to hire even more employees, Amazon more than doubled its cap on cash compensation for tech workers, citing 'a particularly competitive labor market.'
But in its quarterly earnings report at the end of September, executives warned investors that its growth may weaken — possibly to the lowest point since 2001 — amid record high inflation.
Then, just last week, the Times reports, Amazon executives met with institutional investors as its stock sank to its lowest level since the early days of the pandemic, costing the company $1trillion.
As of Monday morning, the company was trading at $98.81, down 42 percent from the same time last year.
CEO Andy Jassy was already looking at ways to pare down costs to the ever-expanding tech giant before considering the layoffs.
After he became CEO of the company last year, previously heading its cloud computing business, he immediately pulled back on a proposed warehouse expansion.
In the ensuing months, he also closed down or at least pared back initiatives like Amazon Care —a service providing primary and urgent health care that never garnered enough customers; Scout, the cooler-sized delivery robot; and Fabric.com, a subsidiary that sold sewing supplies.
And from April through September, the times reports, Amazon reduced its workforce by almost 80,000 — primarily by shrinking its number of hourly workers, and it froze hiring on several smaller teams in September.
By October, Amazon stopped filling more than 10,000 open roles in its retail business, before announcing just a few weeks ago that it froze corporate hiring across the company.
https://news.google.com/__i/rss/rd/articles/CBMiWGh0dHBzOi8vd3d3LmRhaWx5bWFpbC5jby51ay9uZXdzL2FydGljbGUtMTE0MjY1MDcvQW1hem9uLXBsYW5zLWN1dC0xMC0wMDAtam9icy13ZWVrLmh0bWzSAQA?oc=5
2022-11-14 16:23:23Z
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