In response to the findings of a months-long review, the WSJ reports that Amazon has told employees in some unprofitable units to look for jobs elsewhere within the company, while also taking steps to redeploy staff from certain teams to more profitable areas and closing teams in areas such as robotics and retail.
According to the Daily Mail, digital giant Amazon will reportedly be the next to fire off workers at divisions that have failed to produce a profit this year, following in the footsteps of Twitter and Meta.
The Wall Street Journal reported on Thursday that Amazon.com Inc. is reviewing its unproductive divisions, including the devices section that houses voice assistant Alexa, in an effort to slash expenses, which sent the company's stock price up by 11 percent.
In response to the findings of a months-long review, the WSJ reports that Amazon has told employees in some unprofitable units to look for jobs elsewhere within the company, while also taking steps to redeploy staff from certain teams to more profitable areas and closing teams in areas such as robotics and retail.
On LinkedIn, Amazon Robotics AI software developer Jamie Zhang said that he and his whole robotics team had been let go.
Zhang said on his blog, "My 1.5yrs career with Amazon Robotics AI came to an unexpected end in a layoff (our whole robotics team was gone! To be able to work with such brilliant executives and engineers, and to contribute to the development of AWS-based distributed systems for our robotics continuous integration and continuous delivery pipelines, has been an incredible experience. Thank you for helping me grow as a software developer and contributing to my success. I am interested in software engineering roles in either the Denver, CO area or remotely in the United States. Any recommendations or private communications are much appreciated!
According to the article, Amazon is analysing its Alexa business to see whether it should concentrate on enhancing the voice assistant that is built into many of the company's products.
However, the paper notes that expanding the device's capabilities would need a larger investment, and that many users make little use of the gadget's available features. The WSJ, citing records, alleged that the Alexa division had an annual operational loss of Amazon over $5 billion.
Amazon spokesman Brad Glasser stated, "We're taking into consideration the current macroenvironment and examining options to minimise costs."
Glasser expressed "optimism about Alexa's future" since the service continues to be a priority for Amazon in terms of revenue and resources.
In order to better adapt to the "unusual macro-economic climate," the e-commerce behemoth Amazon announced on 3 November that it would be freezing corporate employment.
Beth Galetti, Amazon's senior vice president of people experience and technology, said in a blog post, "We anticipate keeping this pause in place for the next several months and will continue to watch what we're seeing in the economy and the company to modify as we believe makes sense."
According to a Bloomberg article, a combination of increasing inflation, tighter monetary policies, and disappointing earnings reports sparked a record selloff in Amazon shares this year, making the corporation the first public company in history to lose a trillion dollars in market value. The e-commerce and cloud firm had its market value drop by $43.0 billion, or -$1.88 trillion, on Wednesday after closing at a record high of $1.88 trillion in July 2021.
This year, the biggest online retailer in the world had to respond to a dramatic slowdown in e-commerce growth as consumers went back to their shopping patterns before the epidemic. Due to falling revenues, increasing expenses, and rising interest rates, its stock price has dropped over 50%. According to figures provided by Bloomberg, co-founder Jeff Bezos has seen his wealth decrease by around $83 billion, to $109 billion, since the beginning of the year.
Because of consumers' reluctance to spend during this Christmas season due to economic uncertainties, Amazon predicted the lowest quarterly sales increase in the company's history last month. For the first time since the IT stock surge spurred by a global epidemic more than two years ago, its market value dropped below $1 trillion as a result.
According to Neil Saunders, an analyst at GlobalData, "Experimentation and running with too many things that don't yield a return is no longer a luxury Amazon can afford."
Just recently, Meta terminated the employment of 11,000 people, or around 13% of the overall workforce. Particular attention is being paid to the layoffs at Twitter Inc., as the company's new owner, Elon Musk, is shaking up the social-networking market by eliminating half of the company's employees. As with many of its competitors, Apple Inc. is cutting down on expenditure even as it has beaten its rivals this year. Microsoft Corp. lay off little less than a thousand workers across all of its businesses last month.
The IT industry lost 9,587 jobs in October, the most in a single month since November 2020, according to statistics from consultancy firm Challenger, Gray & Christmas quoted by Bloomberg. According to the same research, the number of layoffs reported by US-based firms in the previous month has increased by a significant 13%, with 33,843 people losing their jobs at a wide variety of organisations.
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