WALLINGFORD, Conn. (WTNH and KRON) — Amazon plans to lay off approximately 10,000 corporate and technology workers possibly as soon as this week, according to a report by the New York Times, making it the latest tech giant to see mass employee cuts.
The report, which was based on anonymous sources “with knowledge of the matter,” stated that the cuts will be focused in the devices organization (which is responsible for Alexa), the retail division, and human resources. The reduction would represent 3% of Amazon’s corporate workforce but less than 1% of its 1.5 million worldwide workforce.
Layoffs have been announced or have already happened at several tech giants in recent weeks, including Twitter, Meta (the parent company of Instagram and Facebook), Lyft, Stripe, and Salesforce.
Amazon’s growth abruptly halted as COVID-19 pandemic restrictions ended and inflation skyrocketed, the report continued. The company had seen massive growth during the pandemic, which shuttered many small businesses and led to more people buying online rather than at brick-and-mortar stores and thousands of dollars in stimulus from the federal government.
Amazon stock is at its lowest price since 2020.
The report stated that Echo and Alexa in particular have a low-profit margin and have not caught on among consumers as much as had been hoped.
While the 10,000 figure is a lot of jobs, a Quinnipiac University business professor said that it likely won’t impact people on the delivery side.
“Probably people who are in advanced projects, and Amazon, a lot of highly technical-skilled people,” David Cadden said.
He predicts there won’t be more layoffs on the distribution side going into the holiday season, but that the economy is difficult to predict.
“It is a very peculiar economy,” he said. “We did have two periods where there was contraction in the GDP, which is the normal definition of a recession, but we have some of the lowest record of unemployment.”
And as for Connecticut, Cadden said the state’s distribution center employees have nothing to worry about. However, there likely won’t be an expansion on the immediate horizon.
“There may be a concern that they won’t build additional distribution centers in Connecticut, as they’re planning to build distribution centers across the country,” he said.
A spokesperson for Amazon told News 8 that roles within the operations network will not be included in the layoffs.
Kelly Natel, the Director of Global Media Relations at Amazon shared the following statement:
As part of our annual operating planning review process, we always look at each of our businesses and what we believe we should change. As we’ve gone through this, given the current macro-economic environment (as well as several years of rapid hiring), some teams are making adjustments, which in some cases means certain roles are no longer necessary. We don’t take these decisions lightly, and we are working to support any employees who may be affected.”