According to a report from The New York Times, Amazon is going to lay off thousands of employees.
The shares of Amazon were down.
According to the report, the cuts would be the largest in the company's history and would mainly impact Amazon's devices organization, retail division and human resources. Less than 1% of Amazon's global workforce and 3% of its corporate employees are said to have been laid off.
At other tech firms, there have been reductions in the number of employees. Meta announced last week that it is laying off more than a third of its staff, or more than 11,000 employees, in the wake of the acquisition of the company by Musk.
Amazon had 1.6 million full and part-time employees at the end of the year, a 102% increase from the end of the previous year. According to the New York Times, the total number of lay offs is not fixed.
A representative from Amazon didn't reply immediately.
When it comes to the holiday shopping season, Amazon usually increases its staff to meet demand. As the company faces slowing sales and a gloomy global economy, Andy Jassy has been in cost-cutting mode to preserve cash.
The company is going to freeze hiring for corporate roles. Amazon discontinued a quirky video-calling projector for kids, closed all but one of its U.S. call centers, and axed its delivery robot, among other things.
In October, Amazon's third-quarter earnings disappointed investors and caused shares to sink. Amazon's market cap fell below $1 trillion for the first time since April 2020, and the report was the second time this year that Amazon's results have caused a selloff. Almost all of the stock's surge was wiped out after the report.
Amazon stock is down more than any other stock in the S&P 500 and is on pace for its worst year in six years.
Annie Palmer was a contributor to this report.