Starting this week, Amazon will fire about 10,000 employees in corporate and technological positions, which will be the biggest reduction today.
The abbreviations will affect about 3% of Amazon corporate personnel. The exact number may change because Amazon is reviewing their priorities. According to the source, Amazon plans to reduce jobs in a subsidiary that produces ALEXA devices and home safety chambers, as well as in personnel and retail departments.
Amazon explained the contractions of an indefinite macroeconomic situation that Amazon and other companies faced. Amazon predicts a slowdown in sales growth in a profitable festive season.
In October, the financial director of Brian Olsavski said that the company sees signs of a reduction in family budgets for purchases and continues to deal with high inflation and electricity costs. Then the company said that it would freeze additional corporate hire for several months.
AMAZON unit in recent years has reported annual operating losses of more than $ 5 billion. The company wondered whether it is worth focusing on new ALEXA possibilities if some customers use a voice assistant for just a few tasks?
The total number of Amazon personnel as of September 30 amounted to 1.5 million people, and the planned reductions amounted to less than 1% of the labor force of retailer. We also note that Amazon shares lost more than 40% of their value this year. On November 14, they decreased by 1.1% to $ 99.6.