Amazon is planning a significant workforce restructuring, with thousands set to be laid off.
According to the New York Times, the company plans to lay off more than 10,000 employees in corporate and technology, according to unnamed sources who know the situation.
The layoffs are said to begin as early as this week.
Amazon’s layoffs would include the workforce responsible for Amazon devices and employees from retail and human resources.
The Wall Street Journal published a report on Monday that said Amazon was laying off thousands of workers, with information from an unnamed source.
The news means Amazon is among other tech companies announcing massive layoffs.
Most companies have made a difficult decision given the general economic uncertainty and the sharp drop in demand from tech giants during the pandemic.
At the start of the pandemic, they increased their workforce.
Additionally, Meta announced plans to lay off 11,000 workers last week.
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In early November, Amazon announced it was hitting the brakes on the company’s hiring for a few months.
The company highlighted the economic uncertainty and the number of employees hired in the past few years.
During the pandemic, Amazon’s workforce grew as consumers and consumption habits shifted towards e-commerce.
However, in its latest earnings report, Amazon revealed that its sales forecast for the holiday quarter fell short of analysts’ expectations.
Amazon shares are down more than 40% on a broader market decline this year.
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Amazon’s layoffs are critical for the retail industry, especially as the holiday shopping season approaches.
With recession fears and inflationary pressures lingering, the National Retail Federation predicts a 6% to 8% annual increase in sales for the holiday shopping season.
Last month, Jeff Bezos tweeted about the possibility of a recession, writing:
“The probabilities in this economy tell you to batten down the hatches.”
Bezos told CNN’s Chloe Melas last Saturday that the advice applied to businesses and consumers.
“Take some risks off the table,” he said.
“Just a little bit of risk reduction could make the difference.”
Image source: LaMatin
New York Times: Amazon plans to lay off thousands of employees