Amazon to layoff 10,000 of its employees

Amazon to layoff — The New York Times reported on Monday, citing unnamed persons with knowledge of the situation, that Amazon plans to fire some 10,000 workers in business and technical positions. In 2022 so far, Amazon shares have decreased by more than 40% amid a general market decline.

According to the article, job layoffs may begin as soon as this week. They would likely affect employees who work on Amazon (AMZN) gadgets (such as Alexa, its voice assistant), as well as those in its retail and human resources departments. According to the study, “the overall number of layoffs remains variable.”

Amazon did not immediately answer Monday’s request for a response from CNN Business. CNN was unable to verify the claim independently. Amazon is reportedly planning to fire thousands of employees, according to a source familiar with the situation who was quoted in the Wall Street Journal on Monday.

As a result of the revelation, Amazon would become the most current in a string of internet businesses to announce large layoffs in recent weeks, amid greater economic uncertainties and a steep drop in the demand that many computer titans witnessed during the epidemic and that prompted them to hastily hire personnel. Facebook parent company Meta revealed last week that it will be cutting off 11,000 workers.

Amazon said earlier this month that it was halting corporate hiring “for the next few months” due to the current state of the economy and “how many individuals we have employed” recently. As the epidemic changed consumer spending and purchasing patterns in favor of online shopping, Amazon quickly increased its workforce. However, Amazon predicted in its most recent earnings report that its Christmas quarter sales would be lower than expected.

The retail sector is facing a critical period as the holiday shopping season approaches. This is when news of prospective layoffs breaks. The National Retail Federation anticipates a 6% to 8% rise in sales over last year during the holiday shopping season, despite concerns about the recession and inflation.

The founder of Amazon, Jeff Bezos, warned last month that a recession may be on the horizon, stating that “the probabilities in this economy urge you to batten down the hatches.” Bezos said in a Saturday interview with CNN’s Chloe Melas that the advice was applicable to both consumers and company owners. “Take some risk off the table,” he said. “Just a little bit of risk reduction could make the difference.”