As CEO Andy Jassy steps up efforts to rein in costs, Amazon began laying off employees.
The company notified workers in several divisions, including the Luna cloud gaming unit, that they were being let go.
According to the New York Times, Amazon wants to eliminate about 10,000 jobs. The number is not set in stone because the cuts are being implemented by individual teams.
A person familiar with the matter who asked not to be named because of confidentiality said that employees were frustrated by the lack of communication about the layoffs.
Representatives from Amazon didn't say anything.
According to people with knowledge of the cuts, Amazon has begun laying off contracted employees who worked in recruiting roles for its advertising, internal operations, and Fire TV divisions.
An employee who asked to remain anonymous said that she was told that her contract wouldn't be renewed by Amazon. She was in talks to join Amazon's consumer division but her interview was canceled due to ongoing restructuring.
The Amazon Spheres, part of the Amazon headquarters campus, right, in the South Lake Union neighborhood of Seattle, Washington, U.S., on Sunday, Oct. 24, 2021.Expenses have been slashed across the company in recent months as it stares down a weakened economy and slows growth in its retail business. In the past, the company has paused hiring among its corporate workforce, halted some experimental projects, as well as decided to close, delay or cancel new warehouse locations.
It had been able to avoid mass layoffs by offering employees impacted by project closings the chance to transfer to other divisions.
Less than a year ago, Amazon couldn't find enough workers to keep its warehouses staffed and was still in the midst of a hiring spree. Between the end of last year and the end of this year, it doubled its workforce to 1.6 million.
Consumers have returned to physical stores and its retail business is no longer growing at a rapid rate as it has in the past. The CFO of Amazon said last month that the company is seeing signs that consumers are feeling the sting of inflation.
Olsavsky said on the call with reporters that the company was preparing for a slower growth period.
The company will add the same number of workers as it did last year for the holiday season.
The tech sector is feeling the effects of job cuts. Meta, the parent company of Facebook, laid off 13% of its staff.
It would be the biggest cut in the company's history. Amazon cut 1,300 jobs after the dot-com bubble burst.
There will be thousands of workers laid off by Amazon.
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