The world’s largest online retailer Amazon confirms laying off around 10,000 employees and the affected employees have already been informed through mail.
The company is implementing cost-cutting measures as the last few quarters haven’t been profitable, according to reports. The unusual and uncertain macroeconomic environment, according to the company, has triggered this cut down in its workforce.
The New York Times reported that after experiencing its ‘most profitable era on record’ during the Covid-19 pandemic years, which saw exponential growth in online consumer spending, “Amazon’s growth slowed to the lowest rate in two decades, as the bullwhip of the pandemic snapped.”
The Wall Street Journal reported that Amazon, after a months-long review, has cautioned employees in some unprofitable units to look for other opportunities within the company.
Earlier the e-commerce giant warned of a slowdown in growth for the busy holiday season, a period when it used to generate the highest sales. It was because consumers and businesses have less money to spend due to rising prices.
It has been reported that Amazon even delayed warehouse openings and froze hiring in the retail group.
David Limp, Senior Vice President of Devices and Services confirmed that the company, “will continue to work closely with each individual to provide support, including assisting in finding new roles.”
The laying off process is also likely to impact its Indian units where a few hundred jobs might be curtailed although the exact number of cuts in India is still not confirmed.
