How will Amazon adapt to 9,000 job cuts in the coming weeks?
Delhi : Amazon.com Inc warned on Monday that it would cut another 9,000 jobs to streamline its operations and handle economic uncertainties, adding to the technology sector's troubles.
Amazon will have cut 27,000 jobs in recent months, or 9% of its nearly 300,000-person corporate workforce, in a startling flip for a firm that has long touted its employment growth.
The most recent cut targets Amazon's highly profitable cloud and advertising sectors, which were formerly thought to be untouchable until economic concerns caused business customers to reassess their spending.
After job layoffs that started in November targeted at the company's electronics, e-commerce, and human-resources businesses, changes are also coming to Amazon's streaming division Twitch. By April, Amazon hopes to have decided who it will let go.
Amazon's stock dropped 2%.
The choice was made in response to a seemingly never-ending stream of layoff news in the technology industry, which has seen some of the most valuable companies in the world, like Microsoft Corp. and Alphabet Inc., sever relations with startling numbers of workers they had once courted en masse.
After eliminating more than 11,000 positions in 2022, Facebook's parent company Meta Platforms Inc. announced last week that it will eliminate 10,000 jobs this year, beginning a second round of layoffs for the industry.
In a note, D.A. Davidson analyst Tom Forte stated, "We are not surprised," pointing to recession worries as a possible explanation for Amazon's plans. Amazon's CEO, Andy Jassy, explained the choice in a memo to colleagues that was published online. He claimed it resulted from continuous priority review and economic uncertainty.
Others may wonder why these role cutbacks weren't included in the ones that were already announced, he wrote. The gist of it is that not all of the teams finished their analyses before the end of the fall. "We have chosen to be more streamlined in our costs and headcount given the uncertain economy in which we inhabit and the uncertainty that remains in the foreseeable future," he continued.
Amazon indicated last month that operating profit could fall more in the current quarter, owing to the financial impact of consumers and cloud customers cutting back on spending. In recent months, the corporation has reduced or discontinued entire services, such as its virtual primary care offering for employers.
