Amazon asked their employees in the unprofitable sector to look for other opportunities within or outside the firm.
Amazon is planning to cut off 10,000 employees unlike Meta and Twitter and implement cost-cutting measures as the last 3 months haven’t been profitable. The company could fire a minimum of 10,000 employees starting as soon as possible, says The New York Times.
This layoff will be the biggest in Company’s history. It would represent less than 1 percent of the workforce of a company that employs over 1.6 million globally.
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The job cut will target Corporate and technology-based jobs and device-based groups including Alexa voice assistant along with retail division and human resource, NYT reported citing an anonymous source. Amazon has warned its employees in some unprofitable units to look for other opportunities.
The report comes after a week of giant e-commerce slowdown in the holiday season, a period when it used to generate the highest sales. Company says this happened because individuals and businesses have less money to spend due to rising prices.
Company has spent this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Covid 19 has affected every sector seriously and has changed the way of working.
Amazon Chief Executives officer Andy Jassy has vowed to streamline operations because of slow sales growth and economic uncertainty. After experiencing its ‘most profitable era’ during Covid 19 pandemic time Amazon’s growth slowed to the lowest rate in two decades.
Last week Twitter cut roughly 50% of its workforce following its sales to Elon Musk. Meta also fired 11,000 employees.
