American multinational e-commerce company, Amazon has perfected plans to sack about 10,000 of its employees in the coming days, insider sources have confirmed.
The development is coming only a few weeks after Twitter and Facebook sacked thousands of their staff.
According to sources familiar with the matter, the lay off which is likely to begin this week will impact the company’s devices organization, retail division, and human resources. Two weeks ago, Amazon freezes its hiring process.
If the layoff comes to fruition, Amazon will be joining a growing list of big companies which include Microsoft, Twitter, Meta, and Intel among others that have laid off staff in recent times.
In most cases, the companies justify the layoff as a measure to prepare for a looming recession and a drop in demand for products.
Investors King could recall that Elon Musk lay off about half of Twitter’s workforce a few days after he completed the acquisition of the microblogging platform while Mark Zuckerberg, Meta announced the sacking of 11,000 employees, the largest layoff in the company’s history.
Amazon among other tech companies enjoyed a profitable season during the pandemic. This compelled most tech companies to hire more staff than necessary.
During the pandemic, consumers flocked to online shopping due to the protracted lockdown. This period produced Amazon’s most profitable era on record while the company doubled its workforce within two years.
However, as the pandemic subsided coupled with the ease of movement and reopening of the economy, Amazon’s profit receded and growth slowed to the lowest rate in 20 years.
Similarly, the company’s stock value has dropped to its lowest since the early days of the pandemic, losing about $1 trillion in value from a peak of $1.88 trillion.
Amazon (AMZN) is currently trading at $98.94 as of the time of this report. It is down by 45.17 percent in the last one year.
