The e-commerce behemoth, which might lay off 10,000 workers as soon as this week, would be the latest major IT business to lay off workers.
Thousands of Amazon employees are reportedly being laid off. (Chona Kasinger/Bloomberg)
Amazon intends to fire off 10,000 workers as soon as this week, adding to the rising wave of layoffs affecting the stuttering large tech industry.
According to a source familiar with the subject who spoke on the condition of anonymity to discuss confidential business concerns, Amazon's layoffs would be inside teams on its corporate personnel.
It would also be the second major technology business to implement significant layoffs this year, as the sector prepares for the end of a decade of tremendous development. Facebook, Twitter, Salesforce, and other major firms have already announced significant layoffs this year, a startling change for an industry that was previously supposed to be practically untouchable.
The exact number of layoffs at Seattle-based Amazon is unknown, according to the source. The layoffs are expected to affect the company's device, retail, and human-resources departments.
Amazon declined to comment on the report. The Washington Post is owned by Amazon founder Jeff Bezos.
If the e-commerce behemoth follows through on the plans, it would be the largest employment losses in company history, according to the New York Times.
Amazon announced earlier this month a wide hiring restriction among its white-collar workers, which it planned to endure at least "the next several months."
The hiring slowdown represents a remarkable turnaround for Amazon, which has aggressively hired tens of thousands of employees in both warehouses and corporate offices over the last decade. At the end of September, the company had more than 1.5 million employees, a 5% increase over the previous year.
During the epidemic, Amazon's sales increased as consumers spent more time at home and increasingly purchased online. However, in May, the firm admitted that it had employed too swiftly in its warehouses to keep up with the pandemic's decline. (Large layoffs in its warehouses are unlikely because they typically have more than 100 percent turnover in a given year, owing to the strenuous working conditions, according to experts, and attrition is high.)
High inflation and increasingly frugal consumers prompted the company to report a disappointing forecast for the upcoming holiday season — traditionally Amazon's busiest time of year — sending its stock plummeting last month.
"We're seeing evidence everywhere that people's budgets are tight, and inflation is still high," Amazon Chief Financial Officer Brian Olsavsky said during a conference call to discuss the company's third-quarter profits. "Like other businesses, we are prepared for a time of slower development."
According to a source in attendance who spoke on the condition of anonymity due to professional repercussions, Amazon leaders in recent weeks indicated during meetings with rank-and-file personnel that the business was preparing for probable hiring restrictions and layoffs.
However, officials attempted to reassure staff in at least one of those sessions that not all teams would be terminated.
Layoffs in the IT sector have increased in recent weeks. Last Monday, Meta, the parent company of Facebook and Instagram, laid off 13% of its staff, or 11,00 employees. Elon Musk, the new CEO of Twitter, laid off half of his company's employees shortly after acquiring the social network. Lyft, a ride-hailing service, laid off 13% of its employees. Stripe, a private fintech firm, Zillow, a real estate marketplace, and GoFundMe, a crowdfunding platform, have all announced layoffs since the beginning of October.
Apple, often regarded as Silicon Valley's most tenacious player, issued a hiring moratorium.
The job cuts in the industry come as tech firms warn of recession risks and race to cut costs following pandemic-era hiring binges. Experts say that the Federal Reserve's ongoing interest rate hikes, with more to come, have squeezed tech companies that rely on cheap lines of credit to finance expensive payrolls and capital-intensive services.
author, youssef shnino.