Yahoo Finance Amazon preparing thousands of job cuts – report
Amazon is the latest tech firm preparing to cut thousands of jobs in response to the economic downturn, according to reports in the US.
The tech giant is said to be considering cutting around 3% of its office staff, which would mean around 10,000 people could be affected.
The reports come in the wake of substantial job cuts across the tech sector – Elon Musk cut around half of Twitter’s 7,500 global workforce after completing his takeover of the company, while Facebook owner Meta has also confirmed it is cutting around 11,000 jobs globally.
Snapchat and Microsoft have also announced staff layoffs in recent months.
Amazon’s reported reductions are said to be a response to a slowing global economy, which is hitting the firm’s sales which had grown substantially during the pandemic.
The tech sector, in general, has been hit hard by the economic slowdown after companies saw huge growth during the pandemic as more people moved online during local lockdowns and increased remote working.
Amazon was among a number of firms to increase hiring to meet rising demand but is now being forced to consider cost-cutting as online sales slow post-pandemic.
Meta boss Mark Zuckerberg cited the post-pandemic slowdown in his announcement of Meta job cuts last week.
Amazon founder Jeff Bezos, who has stepped down as chief executive but remains chairman of the board, said on Twitter last month that the current economic climate meant it was time to “batten down the hatches”.
Mr Bezos this week pledged to give away most of his estimated 124 billion dollar (£104 billion) fortune during his lifetime, telling CNN there were “big problems” in the world and the way to solve them was to “work together”.
He has already committed 10 billion dollars over 10 years to the Bezos Earth Fund which helps to fight climate change, and has awarded a further 100 million dollars to country star Dolly Parton to give to any charity she wishes.
