Amazon is planning a major workforce restructuring.
According to the New York Times, from unnamed sources, the company plans to lay off more than 10,000 employees in trades and technology.
The layoffs could begin as early as this week.
The overhaul would include the workforce responsible for Amazon devices, as well as that of retail and human resources.
The news
The Wall Street Journal published a similar report Monday that Amazon was laying off thousands of workers, citing an anonymous source.
The new ranks Amazon among other tech companies that recently announced massive layoffs.
Most companies chose to make a difficult decision amid general economic uncertainty and the sharp slowdown in demand seen by tech giants during the pandemic.
It was at the start of the pandemic that they were prompted to increase their numbers.
Additionally, Meta announced plans to lay off 11,000 workers last week.
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Amazon shares
In early November, Amazon announced it was freezing the company’s hiring for a few months.
The company cited economic uncertainty and the number of people hired in the past few years.
During the pandemic, Amazon’s workforce grew as consumers and consumption habits shifted towards e-commerce.
However, in its latest earnings report, Amazon’s forecast for its holiday quarter revenue showed it falls below analysts’ expectations.
So far in 2022, Amazon shares are down more than 40% on a broader market decline.
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The industry
Amazon’s potential layoffs come at a critical time for the retail industry as the holiday shopping season nears.
As recession fears and inflationary pressures persist, the National Retail Federation forecasts a 6% to 8% year-over-year sales increase for holiday shopping.
Additionally, in October, Jeff Bezos tweeted about the possibility of a recession, writing:
“The probabilities in this economy tell you to batten down the hatches.”
Last Saturday, Bezos told CNN’s Chloe Melas that the advice applied to businesses and consumers.
“Take some risks off the table,” he said.
“Just a little bit of risk reduction could make the difference.”
Reference:
New York Times: Amazon plans to lay off thousands of employees
