Amazon reportedly plans to lay off about 10,000 employees starting this week

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Andy Jassy, chief govt officer of Amazon.Com Inc., throughout the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.
David Ryder | Bloomberg | Getty Pictures

Amazon is planning to put off roughly 10,000 workers in company and expertise roles starting this week, in keeping with a report from The New York Times. Individually, The Wall Street Journal additionally cited a supply saying the corporate plans to put off 1000’s of workers.

Shares of Amazon had been down about 2.5% on Monday.

The cuts can be the biggest within the firm’s historical past and would primarily affect Amazon’s gadgets group, retail division and human assets, in keeping with the report. The reported layoffs would characterize lower than 1% of Amazon’s world workforce and three% of its company workers.

The report follows headcount reductions at other tech firms. Meta announced last week that it is shedding greater than 13% of its workers, or greater than 11,000 workers, and Twitter laid off roughly half its workforce within the days following Elon Musk’s $44 billion acquisition of the corporate.

Amazon reported 798,000 workers on the finish of 2019 however had 1.6 million full- and part-time workers as of Dec. 31, 2021, a 102% enhance. The New York Occasions mentioned the entire variety of layoffs “stays fluid” and will change.

A consultant from Amazon didn’t instantly reply to a request for remark.

The vacation procuring season is essential for Amazon, and often, one the place the corporate has increased its headcount to meet demand. However Andy Jassy, who took over as CEO in July 2021, has been in cost-cutting mode to protect money as the corporate confronts slowing gross sales and a depressing world financial system.

The corporate has already introduced plans to freeze hiring for company roles in its retail enterprise. In latest months, Amazon shut down its telehealth service, discontinued a quirky, video-calling projector for kidsclosed all but one of its U.S. name facilities, axed its roving delivery robot, shuttered underperforming brick-and-mortar chains, and is closing, canceling or delaying some new warehouse locations.

Amazon reported disappointing third-quarter earnings in October that spooked buyers and precipitated shares to sink greater than 13%. It marked the primary time Amazon’s market cap fell beneath $1 trillion since April 2020, and the report was the second time this yr that Amazon’s outcomes have been sufficient to spark a double-digit share sell-off. The sell-off continued for days after the report and erased almost all of the stock’s pandemic surge.

Amazon inventory is down about 41% for the yr, greater than the 14% drop within the S&P 500, and is on tempo for its worst yr since 2008.

— CNBC’s Annie Palmer contributed to this report.

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