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Amazon joins slew of struggling big tech companies as it launches cost-cutting review

By Rachel Douglass

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Business

Photo Credits: Amazon.

Marketplace giant Amazon has reportedly begun a cost-cutting review, with the company’s boss Andy Jassy set to evaluate potentially unprofitable business units.

The report comes on the back of slow revenue progress for the company, which saw just a seven percent revenue increase in the past two quarters, its slowest in around two decades.

It also warned that its sales for the upcoming festive period were expected to be weaker this year, in light of rising inflation.

According to The Wall Street Journal, sources familiar with the details said Amazon had asked staff working within unprofitable divisions, such as robotics and retail, to find jobs in other areas of the company, with other staff to also be redeployed.

Speaking to the publication, Amazon spokesperson Brad Glasser said: “Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review, which occurs in the fall each year.

“As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimise costs.”

The report closely followed an announcement by Amazon that it was planning to freeze corporate workforce hiring.

It joined a slew of big tech companies that had begun cutting jobs and downsizing operations ahead of the upcoming period.

Meta Platforms, the owner of Facebook, announced it would be cutting 11,000 employees, nearly 13 percent of its workforce, while Twitter was said to have laid off over 3,700 employees days after Tesla-CEO Elon Musk acquired the social media platform.

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