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Amazon reportedly set to axe around 10,000 jobs

By Huw Hughes

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Report

Image: Amazon.

Amazon is reportedly set to become the latest tech giant to announce thousands of job cuts in recent weeks.

The US retail behemoth is planning to axe approximately 10,000 jobs in a major cost-cutting drive, the New York Times reports, citing people with knowledge of the situation.

The redundancies would mostly impact employees working at the company’s devices organization, retail division, and human resources department, according to the report.

It would mark the largest job cuts in the company’s 28-year history.

It follows reports earlier this week that the Seattle-based company had launched a cost-cutting review to evaluate potentially unprofitable business units.

Amazon would be the latest heavyweight in the tech space to announce cuts to its workforce in recent weeks as the unprecedented growth companies experienced during the pandemic slows and they are faced with rising inflation and economic uncertainty.

Facebook parent Meta last week announced plans to cut 11,000 jobs - that came just days after Twitter began axing thousands of jobs in a move it said aimed to “place Twitter on a healthy path” following its takeover by Elon Musk which concluded last month.

In the third quarter ended September 30, Amazon’s net income fell to 2.9 billion dollars, down from 3.2 billion dollars a year earlier.

But it still marked a return to profit for the retailer after two consecutive quarters of losses.

For the full year, the company expects to either make no operating profit, or an operating profit of up to 4 billion dollars, compared to the 3.5 billion dollar profit it made in last year’s Q4.

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