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Amazon is planning a significant overhaul of its workforce.
According to the New York Times, anonymous sources say the company plans to lay off more than 10,000 employees in business and technology jobs.
The layoffs could start as early as this week.
According to reports, the overhaul includes the workforce on Amazon devices and those from the retail and human resources department.
The news
The Wall Street Journal shared a similar report on Monday that Amazon will lay off thousands of workers, citing an unnamed source.
The news places Amazon with other tech companies that recently announced mass layoffs.
Most companies have decided to make the tough decision amid broad economic uncertainty and a sharp slowdown in demand seen by the tech giants during the pandemic.
It was during the early days of the pandemic that prompted them to increase staff.
Last week, Meta announced its plan to lay off 11,000 workers.
Read also: Lyft announce plans of workforce layoff
Amazon shares
In early November, Amazon announced it would freeze company hiring for a few months.
The company cited economic uncertainty and the number of people it hired in recent years.
During the pandemic, Amazon’s workforce grew as consumers and spending habits shifted to e-commerce.
However, in its recent earnings report, Amazon’s forecast for its holiday quarter revenue showed it would be lower than analysts expected.
So far, Amazon’s shares are down more than 40% in 2022 due to a broader market decline.
Read also: Amazon set to raise the wages of factory employees and drivers
The industry
Amazon’s potential layoffs come at a crucial time for the retail industry as the holiday shopping season approaches.
As fears of a recession and inflationary pressures linger, the National Retail Federation predicts a 6% to 8% year-over-year sales increase during holiday shopping.
In October, Jeff Bezos tweeted about the recession possibility, writing:
“The probabilities in this economy tell you to batten down the hatches.”
Last Saturday, Bezos told CNN’s Chloe Melas that the advice was for businesses and consumers.
“Take some risks off the table,” he said.
“Just a little bit of risk reduction could make the difference.”
Reference:
New York Times: Amazon plans to lay off thousands of employees
