Amazon is getting ready to trim down thousands of office jobs. A recent report claims that it’s due in part from declining sales and worries over an economic recession.
Further job cuts are expected at the e-commerce company, with 3% or 10 thousand individuals potentially impacted. This would include departments like personal devices and online retailing as well.
The e-commerce giant is taking action to protect its business from harm caused by the pandemic. The company has already conducted a hiring freeze and stopped several warehouse expansions, warning about potential over-hiring during the pandemic.
Previously, the company announced that decreasing expenses will be a key priority in its yearly review of business operations.
“As part of this year’s review, we’re, of course, taking into account the current macro-environment and considering opportunities to optimize costs,” the giant said in a statement at the time.
Media reports say that Amazon has not announced the number of job cuts yet. However, they did mention how things were struggling during pandemic time when there was an increased demand for their products which led them into a slump in sales compared to usual levels.
The giant watches out for different outlook as the slowdown spreads into other regions. In addition, a recent issue has affected its cloud computing unit which may lead them to have lower revenue in future quarters than expected initially.
Founder Jeff Bezos recently vacated the seat as chief executive but remained board chairman. The businessman took to social media to say it was a time to “batten down the hatches.”
Amazon doesn’t stand alone in announcing a widespread layoff.
Meta, the parent company of Facebook and Instagram has announced that they will be cutting 11 thousand employees. The redundancy is said to cover 13% percent or more than one-third the workforce at Meta.
The tech industry is not exactly a stranger to cutbacks. This year alone, US-headquartered companies have reduced over 28 thousand jobs – a twofold reduction from last season.
In an interview with CNN, Bezos said that he would donate his riches to combating climate change and alleviating inequality. The businessman previously received backlash over not pledging a portion of his fortune earlier this year.
Meanwhile, Warren Buffet and Bill Gates have both pledged to give away portions of their vast fortunes in order that others may live better lives.
After a $100 million donation to the country music icon and philanthropist Dolly Parton, Bezos announced his decision this week following an outpouring of support from around America.
When CNN asked if he wanted to donate most of his riches within his lifetime, the businessman said: “Yeah, I do.” But when pressed for more information on what cause this generous gift would go towards? He didn’t give any details.
“The hard part is figuring out how to do it in a levered way,” he said.
Bezos has helped launch a new foundation to counter climate change. The gesture came after many people criticized him for spending massive amounts on trips into space rather than addressing problems here on Earth.