Amazon plans to lay off 10,000 employees due to declining sales

Amazon is reportedly getting ready to lay off thousands of office workers due to decreasing sales and worries about an impending recession.

The e-commerce giant’s office personnel could lose about 10,000 of their employees, according to US media sources who requested anonymity.

Cuts are anticipated to have an impact on departments like e-commerce and personal devices.

The business warned it had overhired during the pandemic and had previously implemented a hiring freeze and stopped some of its warehouse expansions. Additionally, it has taken steps to close off some areas of its operations by shelving plans for things like a personal delivery robot.

The business announced last week that cutting costs would be a priority in its annual review of business operations. “As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs,” the e-commerce company said in a statement.

According to media sources, the precise number of positions that will be eliminated is still uncertain.

Amazon is battling a dip in online sales after the epidemic saw a surge in its revenue. Despite a 15 per cent increase in overall revenue in the most recent quarter, the company has remained concerned about the forecast as the slowdown spreads to other industries, including its long-profit-boosting cloud computing division, Amazon Web Services.

On social media, the company’s founder Jeff Bezos, who is no longer serving as CEO but is still chairman of the board, declared that it was time to “batten down the hatches.”

Amazon joins a long list of other tech firms that have announced layoffs in an effort to signal an impending economic collapse. Included in the list is Meta, the parent company of Facebook, Instagram, and WhatsApp, which recently announced plans to eliminate 11,000 jobs, the largest reduction in staff in company history.

According to a survey by Challenger, Gray & Christmas, which analyses such announcements, US-based tech companies have cut more than 28,000 jobs overall this year, more than double the number from a year ago.