Deficit device division: According to American media, Amazon wants to lay off thousands

Stand: 14.11.2022 20:50

First Twitter and Facebook parent company Meta, now Amazon: the online giant wants to cut about 10,000 jobs, American media report. The equipment department in particular would suffer from the cuts.

The job cuts at the big tech companies in the US apparently continue: according to US media reports, the world’s largest online mail order company Amazon is planning its biggest job loss yet given the bleak economic outlook. The group wants to start cutting about 10,000 jobs this week, the New York Times wrote. The newspaper relies on insiders.

The focus of the cuts is on the loss-making device division of the widely distributed group, which also includes the “Alexa” voice control and the Echo smart speaker. The New York Times says the reduction, the exact size of which has not yet been determined, is equivalent to about three percent of the total workforce.

Amazon has imposed a staff freeze

The financial service Bloomberg reports this later according to its own sources. According to the Wall Street Journal, “thousands” of jobs are at stake. Amazon initially declined to comment. The group recently had around 1.5 million employees worldwide.

The company already warned investors about a weak last quarter and decided to stop hiring in early November given the increased risks of inflation and recession. Amazon is under pressure to cut costs following a spending spree during the pandemic. The stock is down more than 40 percent this year.

Companies want to save costs

Before Christmas, for which Amazon often hires reinforcements, the job cuts would be another signal for the sudden end of the tech industry job boom. The queue of American companies announcing layoffs is getting longer. Some of the big tech companies are currently trying to cut costs and have announced job cuts, such as Facebook parent Meta and Twitter, the short message platform acquired by Tesla boss Elon Musk.

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