Amazon.com Inc. is planning to lay off around 10,000 employees in corporate and technology roles beginning this week, experts familiar with the matter said on Monday, in what would amount to its biggest such reduction to date.
For the traditionally profitable holiday season, Seattle-based Amazon anticipates a slowing in sales growth.
The layoffs, earlier reported by the New York Times, would amount to around 3% of Amazon’s corporate workforce. According to Sources, the actual number may change as Amazon’s companies evaluate their objectives.
The Times reports that Amazon’s Alexa division, retail business, and human resources section would all be affected by the layoffs. According to internal papers seen by The Wall Street Journal, Amazon’s Alexa department, which creates the Echo hardware and accompanying software, loses up to $5 billion each year.
The e-commerce behemoth is trying to reduce the size of its warehouse network and lease out space within the facilities. Amazon Care, its primary health care service, has also been discontinued.
The online retailer intends to cut employment in its devices section, which manufactures voice-controlled “Alexa” gadgets and home-security cameras, as well as its human-resources and retail departments. Amazon’s timeline for alerting employees remained unknown.
For years, the business has been pouring money into the programme, creating a series of new products ranging from Alexa-enabled security cameras to smart eyewear that allow you to access Alexa, make calls, and listen to music.
However, as consumers return to physical stores or cut back on spending, e-commerce sales are declining, pushing Amazon to retool its company and increase its profitability.