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Amazon Will Cut Down Thousands Of Jobs In The Company: Report

Amazon Will Cut Down Thousands Of Jobs In The Company: Report Inc plans to lay off around 10,000 employees in corporate and technology roles starting this week, according to reports quoting people familiar with the matter. If these reports turns out to be true, it would be the largest such reduction to date that will be made by the company.
The layoffs, which were first reported by the New York Times, would amount to about 3% of Amazon's corporate workforce. According to Reuters, the exact number may change as Amazon's businesses review their priorities.
According to the person, the online retailer intends to cut jobs in its devices division, which manufactures voice-controlled "Alexa" gadgets and home-security cameras, as well as its human-resources and retail divisions. Amazon's timeline for informing employees remained unknown.
The reports quoted the sources attributing the decrease to Amazon's and other companies' uncertain macroeconomic environment.
The announcement comes on the heels of a wave of layoffs in the technology sector, which is wary of a recession after years of rapid hiring. Facebook parent Meta Platforms Inc announced last week that it would cut over 11,000 jobs, or 13% of its workforce, to cut costs.
Amazon, based in Seattle, predicts a slowdown in sales growth during the traditionally lucrative holiday season.
On a conference call with reporters last month, Chief Financial Officer Brian Olsavsky stated that the company was seeing signs of tighter household budgets for shopping, and that it was still dealing with high inflation and energy costs.
It has since stated that it will halt new corporate hiring for several months.
According to the Wall Street Journal, Amazon's devices division has recently posted an annual operating loss of more than $5 billion. According to the report, the company has considered whether to focus on new Alexa capabilities when some customers only use the voice assistant for a few tasks.
Taking warehouse and transportation jobs into account, Amazon's headcount was more than 1.5 million as of September 30, so the planned reductions amounted to less than 1% of the retailer's workforce.
This year, Amazon shares have lost more than 40% of their value. On Monday afternoon, they were down 1.1% at $99.67.

Christopher J. Mitchell

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