Amazon to cut 10,000 jobs

Tech giant Amazon plans to cut around 10,000 jobs. That reports The New York Times Monday. The first layoffs will fall this week, the newspaper reports. In particular, Amazon store staff and the departments responsible for Amazon devices and human resources will be affected.

With the impending mass layoff, Amazon joins a list of tech companies in Silicon Valley that have been sweeping the workforce in recent weeks. For example, Elon Musk, the new owner of Twitter, fired half of his staff and Meta, the parent company of Facebook and Instagram, announced it would cut 11,000 jobs. Companies such as Netflix, Tesla and Stripe have also recently laid off staff on a large scale.

Also read: The chilly wave of layoffs in Silicon Valley

The 10,000 jobs at Amazon equal roughly three percent of the contracted workforce. It is not yet clear in which countries the layoffs will occur. The layoffs are seen as a response to disappointing growth for Amazon, which has seen its lowest growth rate in 20 years since the end of the pandemic. In addition, the changing shopping behavior of customers, who buy less online since the pandemic is over, and high inflation in the US are putting additional pressure on sales.