India (Commonwealth Union)_ Sources have revealed that Amazon is preparing to fire thousands of workers and take cost-cutting measures due to its recent loss-making quarters.
According to the New York Times, the corporation may dismiss up to 10,000 workers starting this week. It would be the largest layoff in Amazon’s history if the overall number of layoffs remained around 10,000. It would make up less than 1% of a corporation of more than 1.6 million employees worldwide.
According to the NYT, which cited unidentified sources, the job cuts will primarily affect the retail division, human resources, and the devices group, which includes the team in charge of the Alexa voice assistant. Following a months-long review, Amazon has advised some employees in unprofitable units to look for other opportunities within the business, according to the Wall Street Journal. The report comes shortly after the multinational e-commerce company issued a warning about a slowdown in growth for the busy holiday season, which was previously when it saw the highest sales. According to Amazon, this is a result of consumers’ and companies’ reduced spending power as a result of price increases.
The world’s largest online retailer has spent the majority of this year adjusting to a sharp slowdown in e-commerce growth as consumers returned to their pre-pandemic routines. Amazon halted hiring in the retail division and postponed warehouse openings.
In light of sluggish sales growth and the uncertain state of the economy, Amazon CEO Andy Jassy has vowed to streamline operations. Because its voice-activated products haven’t yet established themselves as must-have accessories and frequently end up in consumers’ closets, the Alexa division has long been open to downsizing. Amazon’s growth slowed to the lowest rate in two decades as the bullwhip of the pandemic snapped, according to a New York Times report. This was after the company experienced its “most profitable era on record” during the COVID-19 pandemic years, which saw exponential growth in online consumer spending.
