In January, Amazon announced that it would be cutting around 18,000 jobs due to economic uncertainty. Now, the online retail giant says it plans to axe another 9,000 positions as it looks for more ways to reduce its costs.
Amazon employs 1.5 million people globally, making it the world’s fifth-largest employer. However, like other tech businesses, the company has reported lower sales figures in recent months, which has been fuelled by consumer fears about the economy.
It says that most of the costs would be in the advertising and cloud computing sections of its business, but it didn’t say which positions or countries would be affected.
The firm has faced more pressure to cut its costs because of slower sales growth, and it also plans to change its business model and invest more in robotic systems.
After experiencing a sales boom during the pandemic, Amazon, like other online businesses, is now seeing sales slow down as shopping returns to normal and the cost of living increases.
Other online companies, including Meta and Google, have recently taken similar measures and cut costs to stay competitive. For example, Meta. which owns Facebook, Instagram, and WhatsApp, announced last week that it plans to cut 10,000 jobs globally.
Amazon’s Chief Executive Officer Andy Jassy said that the positions would be closed in the next few weeks and although it has been a “difficult decision”, it would help the company in the long term. He also said that, in most areas of the business, roles had been added in recent years.
He added, “Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.. To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company.”
Add Comment