Amazon.com Inc is planning to lay off around 10,000 employees in corporate and technology roles beginning this week.The cuts would represent about 3 percent of Amazon's corporate staff. The online retailer plans to eliminate jobs in its devices organization, which makes voice-controlled "Alexa" gadgets and home-security cameras, as well as in its human-resources and retail divisions.
E-commerce leader Amazon has reported that it will lay off employees as the year-end shopping season starts, when a large number of manpower is urgently needed. News outlets such as the New York Times and Reuters reported that Amazon plans to eliminate jobs in its devices organization, which makes voice-controlled "Alexa" gadgets and home-security cameras, as well as in its human resources and retail divisions. It is estimated that about 10,000 people will be laid off, accounting for about 3 percent of U.S. Amazon employees and less than 1 percent of the global workforce. Analysts pointed out that the post-epidemic economic recession has hit Amazon.
Dan Ives, Managing Director, Wedbush Securities: “There's clearly been a massive drop off in growth that we've seen across the tech industry. Amazon is not immune to that.”
The Wall Street Journal reported that Amazon's devices unit in some recent years has posted an annual operating loss of more than NT$150 billion. Facing a global economic downturn and recession, Amazon's new CEO Andy Jessy has adopted a cost-cutting business strategy since he took office last year. Before news of layoffs came to light, Amazon first tried to freeze retail personnel hiring, shut the electronic medical services department and smart customer service centers. It also canceled logistics robots and suspended store exhibition plans. Amazon's financial report showed poor revenue in the third quarter, and its stock has dropped by more than 13 percent. Amazon's share price has lost 41 percent of their value this year, its worst performance since 2008.
Dan Ives, Managing Director, Wedbush Securities: “Look, I think dark times in tech. We're seeing it at Amazon, Apple, Microsoft and others. The clock struck midnight on hypergrowth, and now you're seeing the cuts across the board. ”
The technology industry may indeed be entering a dark period. Facebook, which was renamed Meta, reported last week it will lay off more than 11,000 people, or 13 percent of its workforce, to rein in costs. After Tesla founder Elon Musk bought Twitter for NT$1.4 trillion, he immediately laid off as much as half of its workforce. Amazon's 58-year-old founder Jeff Bezos expressed for the first time in an exclusive interview with CNN that he would donate most of his net worth for charity. Bezos has been the richest man in the United States for four consecutive years, and his current net worth is as high as NT$3.8 trillion. Prior to his announcement, Bezos rarely made charitable donations. He was once on the same list as the most stingy billionaire with Musk. His ex-wife MacKenzie Scott donated most of her alimony to charity, and Bezos was under a lot of pressure to do the same.