Amazon.com Inc. will begin a series of layoffs that will eventually affect more than 18,000 employees, leading to the largest-ever job cuts announced earlier this month.
The cut comes as retailers grapple with slowing online sales growth and prepare for a possible recession that could impact customers’ purchasing power.
The demise began last year, initially hitting Amazon’s Devices and Services group, which builds the Alexa digital assistant and Echo smart speaker, hardest. The latest round, due to start Wednesday, will primarily affect the retail sector and human resources.
The job cuts represent only about 1% of the total workforce, which includes hundreds of thousands of warehouse and shipping workers, but about 6% of the 350,000 Amazon employees worldwide.
“Amazon has weathered uncertain and difficult economies in the past and will continue to do so,” Chief Executive Andy Jassy said in a memo to employees earlier this month. “These changes will help us pursue long-term opportunities with a stronger cost structure.”
After closing 2.1% lower at $96.05 on Tuesday, Amazon shares were little changed in pre-market trading before the exchange opened in New York.
Amazon’s Seattle headquarters
The world’s largest online retailer spent much of the last year responding to a sharp slowdown in e-commerce growth as shoppers reverted to their pre-pandemic habits. Amazon has delayed opening warehouses and halted hiring at retail groups. The freeze was extended to include the company’s corporate staff, after which cutbacks began.
Amazon is among the big tech companies that have slipped in the rankings, including Cisco Systems, Intel, Meta Platforms, Qualcomm and Salesforce.
(Except for the headline, this article is unedited by NDTV staff and is published from a syndicated feed.)
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