In a move that could hit the retail industry hard, Amazon has announced plans to cut ten thousand jobs. The layoffs will be in several areas including its device division, human resources, and retail division. However, the layoffs would represent only three percent of the company’s overall corporate workforce. As of September, Amazon employed 1.5 million people worldwide, a five percent increase over the previous year. It has more than 330,000 corporate and technology employees around the world. Regardless of the exact number of people affected by the layoffs, the announcement comes during a critical holiday shopping season for consumers.
The layoffs will hit a variety of functions, including the Kindle and Echo devices division. The corporate and human resources division is also expected to suffer. The company also plans to cut jobs in its retail division and its cloud computing division. This news follows news last week that Amazon has frozen hiring in several divisions, including its retail division. The company’s layoffs, if announced as planned, are expected to be the largest since its founding.
Amazon has already suspended new corporate hiring since July 2021. Its stock has already slipped below $1 trillion, and executives have been scrutinizing the company’s businesses to cut costs. Amazon’s chief executive, Andy Jassy, took the position last year after running its cloud computing business. His goal has been to streamline the company and improve efficiency, and he has already begun examining costs and cutting staff. Last month, he warned on Twitter that he was concerned about the upcoming recession, a warning echoed by fellow CEO David Solomon.
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