Amazon to cut 10,000 jobs as business takes hit
The cuts are reportedly set to affect divisions including personal devices and e-commerce, with around 3% of office jobs impacted in total
Amazon is reportedly set to cut up to 10,000 jobs amid a slowdown of business in recent months, The New York Times has reported.
The cuts are reportedly set to affect divisions including personal devices and e-commerce, with around 3% of office jobs impacted in total.
It comes after reports earlier this month said that Amazon chief executive Andy Jassy was leading a cost-review of the business while examining businesses at the company that are not profitable.
First reported by the Wall Street Journal, sources reportedly revealed Amazon is examining its Alexa business alongside its robotics division.
In a statement to Bloomberg, Amazon confirmed it was undergoing an annual operating-plan review which will have a particular focus due to the current global economic challenges. It said: “As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimise costs.”
The news comes after Amazon saw its shares fall by up to 20% last month after it warned of a slowdown in sales for the upcoming quarter.
At the time, the group reported that sales hit $127.1bn (£110bn) in the quarter ended 30 September, 2022, a rise of 15% against the prior year yet still below analysts’ expectations.
Operating income over the period fell to $2.5bn (£2.2bn), down from $4.9bn (£4.3bn) in the third quarter of 2021.
Looking at the upcoming quarter, it predicted sales to be between $140bn (£122bn) and $148bn (£129bn). While this marks a growth of between 2% and 8% compared with the fourth quarter of 2021, analysts were expecting sales to hit $155.15bn (£135bn) over the golden quarter.
