Raters- Amazon.com Inc said on Monday it would cut 9,000 jobs, making it the latest Big Tech company to announce a second round of layoffs in the face of a possible recession.
In recent months, a number of tech giants including Microsoft Corp, Salesforce Inc, Alphabet, and Meta Platforms have slashed thousands of jobs because of the pandemic-led hiring sprees. Amazon is the second bellwether to announce a second round of cuts, following Facebook-parent Meta.
Andy Jassy said the company had added a large amount of staff in the past few years, but the uncertain economy has forced it to choose cost and headcount cuts. The cloud services, advertising and Twitch units will be affected by the cuts.
In a statement posted on the company's website, Jassy said that the company chose to be more streamlined in our costs and headcount due to the uncertain economy in which we live, and the uncertainty that exists in the near future.
Amazon said last month that operating profit may fall in the current quarter because of the financial impact of consumers and cloud customers that are slowing down on spending. Sales from its lucrative cloud-computing division slowed during the fourth quarter.
Amazon has shut down its entire services like its virtual primary care offering for employers.
During morning trading on the Nasdaq, Amazon's shares fell by 1.1 per cent.
After the first mass layoff in the fall, Meta Platforms said it would cut 10,000 jobs this year, which has resulted in the loss of more than 11,000 jobs.