The company notified regional authorities in California in the United States on Tuesday that it would lay off some 260 employees at various facilities that employ data scientists, software engineers and other corporate workers.
These job cuts take effect on January 17, reported the Associated Press (AFP).
Amazon did not specify how many more layoffs may be underway beyond those notified under California law, which requires companies to give 60-day notice if they have 75 or more full-time workers.
The online commerce giant employs more than 1.5 million workers worldwide, mostly hourly workers.
Like other tech or social media giants, Amazon made sizable gains during the Covid-19 pandemic as customers chose to shop more from home.
However, the growth of these revenues has slowed as the pandemic has subsided and consumers have become less reliant on ‘online’ commerce.
The Seattle-based company has posted two consecutive losses this year, driven mainly by write-offs booked for its equity investment in electric vehicle startup Rivian Automotive.
The return to profits came in the third quarter, but investors are pessimistic about the downwardly revised projections for the current quarter, normally positive due to the holiday season.
To contain costs, Amazon has already canceled some of its projects, including the Fabric.com subsidiary, Amazon Care and the Scout home delivery robot.
It is also reducing its physical footprint, delaying, or canceling, plans to occupy some new warehouses across the country.
Mass layoffs are rare at Amazon, though the company cut its workforce in 2018 and 2001 during the dotcom bust. [bolha da Internet]🇧🇷
Given the rise in prices, the company had announced at the beginning of the month that it would stop hiring its corporate staff, after the freeze imposed on its sales division.
Employees working in different departments, including the Alexa voice assistant and the Amazon Luna cloud gaming platform, said they were laid off Tuesday, according to LinkedIn posts.
“As part of our annual operational planning review process, we always look at each of our businesses and what we think we need to change,” Kelly Nantel, an Amazon spokeswoman, said in a statement.
“As we move through this, given the current macro environment (as well as several years of quick hires), some teams are making adjustments, which in some cases means certain roles are no longer needed,” he added.
The New York Times reported Monday that the online sales platform is preparing to lay off some 10,000 workers.
If confirmed, it will be the largest job cut in the company’s history.
The cuts will focus on Amazon’s retail division, human resources and device organization, according to the New York Times.
Meta, which controls Facebook, announced last week the layoff of 11,000 people, around 13% of its workforce, while Elon Musk, the new owner of Twitter, cut the company’s workforce in half.
Source: TSF
