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Amazon plans to lay off at least 10,000 people, job cuts may begin this week: Reports

Washington, USEdited By: Nishtha BadgamiaUpdated: Nov 15, 2022, 04:48 PM IST

Amazon logo Photograph:(Reuters)

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If the number of job cuts is in fact near 10,000 it would be the biggest layoff in company history as it represents at least one per cent of the total 1.6 million full-time and part-time employees across the world it had as of December 31. However, the report said that the total number of layoffs remains fluid. 

On Monday, a report by the New York Times citing people with knowledge of the matter said Amazon is planning to lay off at least 10,000 employees as early as this week. They will focus on the company’s devices unit which includes several products including Alexa and other appliances, as well as the retail division and the e-commerce giants’ human resources department, said the report. 

If the number of job cuts is in fact near 10,000 it would be the biggest layoff in company history as it represents at least one per cent of the total 1.6 million full-time and part-time employees across the world it had as of December 31. However, the report said that the total number of layoffs remains fluid. 

This comes after Amazon recently said that it would hold off on hiring new corporate staff for a few months. According to a report by Wall Street Journal, these job cuts are a part of the cost-cutting review which has been in the works for months now, during which the e-commerce giant also asked employees in certain unprofitable divisions to look for jobs elsewhere. 

Furthermore, citing internal documents WSJ said that the unit which houses Alexa had posted an operating loss of more than $5 billion a year, while Amazon is considering whether they should invest in adding new capabilities to the company’s voice assistant, Alexa. As the device is used by customers for only a few functions and would require a greater investment, said the report citing people with knowledge of the matter. 

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The US-based company had also warned of a slowdown ahead of the busy holiday season which usually generates high sales, however, due to high inflation consumers and businesses now have less money to spend. So far, Amazon's shares have lost at least 40 per cent of their value in 2022.

The report comes amid mass layoffs seen across major firms announced recently, like Facebook’s parent company Meta which said that it would cut over 11,000 jobs, Elon Musk-owned Twitter which fired at least 50 per cent of its workforce, and Microsoft Corp which also laid off nearly 1,000 employees. 

(With inputs from agencies) 
 

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