Job cuts at Amazon could affect more than 17,000 workers, more than previously estimated, reports the Wall Street Journal Wednesday. This job cut plan is the largest among recent announcements of workforce reductions affecting the technology sector in the United States.
The newspaper, which cites sources close to the distribution giant, recalls that Amazon had already announced the plan to cut 10,000 jobs in November and began to do so.
At the end of September, the group had 1.54 million employees worldwide, not including seasonal workers hired during the busiest periods, especially during the holiday season.
technology in crisis
Amazon has been hiring hard during the pandemic to meet the explosion in demand, doubling its global headcount between early 2020 and early 2022. But the company saw net profit fall 9% year-on-year in the third quarter.
And for the last quarter, Amazon anticipated anemic growth by its standards, between 2% and 8% in a year, and an operating profit of between 0 and 4 billion dollars, against 3.5 for the same period of 2021. The group will announce its annual results on February 1.
In the technology sector, the main platforms with a business model based on advertising are facing budget cuts by advertisers, who reduce their expenses in the face of inflation and rising interest rates.
Meta, the parent company of Facebook, announced in November the loss of 11,000 jobs, or about 13% of its workforce. At the end of August, Snapchat cut about 20% of its workforce, or more than 1,200 employees. Twitter, bought in October by Elon Musk, for its part, laid off about half of its 7,500 employees.
Source: BFM TV
