(KRON) – Amazon is planning on becoming the latest tech giant to see mass layoffs, according to a report in the New York Times, which states that approximately 10,000 corporate and technology workers could be laid off as soon as this week.
The report, which was based on anonymous sources “with knowledge of the matter,” stated that the cuts will be focused in the devices organization (which is responsible for Alexa), the retail division and human resources. A 10,000-employee layoff would represent 3% of Amazon’s corporate workforce but less than 1% of its 1.5 million worldwide workforce.
Layoffs have been announced or have already happened at several tech giants in recent weeks, including Bay Area-based Twitter, Meta (the parent company of Instagram and Facebook), Lyft, Stripe and Salesforce.
Amazon’s growth abruptly halted as COVID-19 pandemic restrictions ended and inflation skyrocketed, the report continued. The company had seen massive growth during the pandemic, which shuttered many small businesses and led to both more people buying online rather than at brick-and-mortar stores and thousands of dollars in stimulus from the federal government. Amazon stock is at its lowest price since 2020.
The report stated that Echo and Alexa in particular have a low profit margin and they have not caught on among consumers as much as hoped for.