Unnamed sources told The New York Times that Amazon would lay off roughly 10,000 employees this week.
Following in the steps of other tech giants like Microsoft and Twitter, Amazon is taking steps to minimize expenditures during the global economic downturn.
Interest rates remain high while inflation continues to be a point of contention in the US.
Job cuts will primarily affect the company’s Alexa division, which is responsible for developing Amazon’s Echo products and associated software. Sources believe the Alexa division is losing $5 billion a year.
Retail and human resources divisions are also said to be part of the cuts. About 1% of Amazon’s 1.5 million employees will be affected.
Amazon’s financial struggles result from over-expansion during the peak in e-commerce sales during the pandemic. Now that consumers are returning to brick-and-mortar stores and, in general, cutting back on spending, Amazon will have to recorrect its operations.
