Amazon is reportedly planning 10,000 layoffs

new York The wave of layoffs in Silicon Valley continues. According to a report by the New York Times, the online retailer Amazon could cut around 10,000 jobs this week. Office jobs in particular are said to be affected: According to the information, it is about the areas of Alexa voice recognition, online trading and the human resources department. In the cloud division AWS, on the other hand, hardly any jobs are to be cut.

The layoffs come just weeks before the important holiday season. They show just how badly the Seattle e-commerce giant has been impacted by the slowing economy. This was also shown by the disappointing quarterly results, which sent the share price plummeting.

Amazon had expanded and invested massively during the pandemic. But now business has collapsed faster than expected. After Twitter and Facebook parent Meta, Amazon is the third tech company planning layoffs in the last few weeks. A request to Amazon went unanswered as of the publication of this article.

The 10,000 jobs represent 3 percent of the US office workforce and less than 1 percent of the 1.5 million workers worldwide.

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Just earlier in the year, Amazon had boosted pay for its tech workers in an effort to keep them. Now they too could be affected by the layoffs.

On the occasion of the quarterly figures, CEO Andy Jassy explained that Amazon is feeling the effects of inflation and warned that growth will slow significantly. The otherwise always lucrative cloud division has also weakened recently because corporate customers are also acting more cautiously in the uncertain environment.

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As a result, the share price collapsed by around a fifth. On Monday, too, the share price lost value again after a recovery in the past week. At around $99, the price is well below the high of $183 the stock reached during the pandemic.

Various new business areas such as physical shops and health services have also not brought the hoped-for success. According to the New York Times, the low-margin Alexa speakers have not brought the hoped-for additional purchases either.

Amazon had originally expected that more customers would also order verbally and not just have their favorite music played or ask about the weather. Internally, this division has therefore long been considered a possible target for cost savings.

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