Amazon begins layoffs as economic hardship mounts • TechCrunch

Update: Spokesperson Kelly Nantel told TechCrunch, “As part of our annual operational planning review process, we always review each of our businesses and what we think needs to change. As we go through this, given the current macro environment (as well as several years of rapid hires), some teams are making adjustments, which in some cases means that certain roles are not more needed. We do not make these decisions lightly and strive to support all employees who may be affected. »

This week, Amazon began the process of cutting jobs across the company. Managers have started informing employees that they have two months to find another position with the company or accept severance pay, according to reports. Many employees have acknowledged via services like LinkedIn that they have been affected by the moves.

Other reports, meanwhile, cite workforce frustrations that the company has not sent any company-wide notifications to acknowledge the scale and scope of the cuts. We contacted Amazon for a comment.

The news follows weeks of rumors surrounding the acceleration belt tightening led by CEO Andy Jassy. Following reports that the company was eyeing its appliances division in particular, it was learned earlier this week that the company plans to lay off 10,000 people, or around 3% of its workforce. The figure would mark the biggest “downsizing” ever undertaken by the e-commerce and cloud computing giant in its nearly 30-year history.

Retail and human resources would also be affected, along with the company’s cloud gaming service, Luna. The cuts come less than two months after Google pulled the plug on its competing service, Stadia.

Last week, a company spokesperson told TechCrunch:

We remain excited about the future of our major companies, as well as new initiatives such as Prime Video, Alexa, Grocery, Kuiper, Zoox and Healthcare. Our senior management team regularly reviews our investment prospects and financial performance, including through our annual operating plan review, which takes place in the fall of each year. As part of this year’s review, we are of course taking into account the current macroeconomic environment and considering opportunities for cost optimization.

The statement acknowledged what have been major financial headwinds for everyone from the smallest start-up to the largest multinational. Amazon’s devices division, which includes Echo products, Fire tablets and its Alexa business, was a prime candidate for the chopping block, given that it reportedly suffered a $5 billion a year revenue loss.

It’s been a long-term strategy for wider acceptance of its smart assistant, Alexa, but Jassy seems to be taking a hard look at the divisions that need a lot of hype. The company’s last mile delivery robot Scout was among the recent victims of a broader consolidation of its robotics division.

Amazon is far from the only big tech company making big cuts as it braces for economic headwinds. Last week, Meta laid off 11,000 — approximately 13% of the company’s total workforce. Under new CEO Elon Musk, Twitter has also began laying off what could amount to thousandswhile Selling power and Bandaged are struggling with their own restructuring. In addition to broader macroeconomic concerns, Amazon’s revenue has also started to return to Earth following the pandemic-fueled surge in online shopping.

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