Amazon is reportedly planning to lay off 10,000 workers as early as this week. The upcoming layoffs will be the largest in the company’s history, according to sources, citing people familiar with the situation.
During the dot-com crash in 2001, Amazon laid off approximately 1,500 employees, despite the fact that the company’s workforce (and value) has grown significantly over the last 20 years. Amazon currently employs over 1.5 million people worldwide, including hourly workers. Due to current macroeconomic issues and declining revenue, American tech behemoths such as Meta (formerly Facebook) and Twitter have recently laid off thousands of employees.
Laying off around 10,000 people would imply dismissing roughly 3% of Amazon’s corporate employees and less than 1% of its global workforce of more than 1.5 million, the majority of whom are hourly workers.
Breaking News: Amazon plans to lay off approximately 10,000 people starting as soon as this week, in what would be the largest cuts in the company’s history. https://t.co/YP89YdPQV2
— The New York Times (@nytimes) November 14, 2022
Amazon recently shut down its Amazon Care service, which provided primary and urgent health care. It also brought Scout, the cooler-sized home delivery robot, and Fabric.com to a halt.
Amazon halted hiring in several smaller teams in September. In addition, in October of this year, the company stopped filling over 10,000 open positions in its core retail business. It also halted corporate hiring for the next few months two weeks ago.
According to the report, Amazon’s layoffs will affect employees in the retail division and human resources. Several employees working on Amazon’s virtual assistant Alexa will also be laid off, according to the report. According to a source, the number of layoffs is still flexible and will likely be implemented team by team rather than all at once as each business completes its plans. If it remains at around 10,000, it will account for 3% of Amazon’s corporate employees and 1% of the global workforce.