Amazon Starts Laying Off Employees To Cut Costs Amid Economic Downturn: Report

Days after Meta and Twitter layoffs, US-based technology and e-commerce giant Amazon has also started reducing its non-profitable initiatives amid the growing economic downturn. Jamie Zhang, a software engineer working at Amazon, in a LinkedIn post informed about his connections that have been laid off from the company, according to a Business Today report.

“My 1.5yrs tenure at Amazon Robotics AI came to an end in a surprising layoff (our entire robotics team was gone!). It was a great journey to work alongside the amazing leaders and engineers, and for my part to help build out large-scale distributed systems via AWS for our robotics CI / CD pipelines. Thank you all for making me a better software engineer in the process. For the new chapter, I am open to both local (CO) and US remote opportunities for software engineering positions. Referrals and direct messages are most welcome!,” Zhang said in a LinkedIn post.

Last week, the company had just announced a hiring freeze, as per an internal memo sent out by a top executive, according to the Business Today report.

Amazon.com is the world’s first public company to lose a trillion dollars in market value. This is a result of a combination of rising inflation, tightening monetary policies and disappointing earnings updates that triggered a historic selloff in the stock this year, according to a Bloomberg report.

It added that Amazon’s shares fell 4.3 per cent on Wednesday, pushing its market value to about $879 billion from a record close of $1.88 trillion in July 2021. Microsoft has also lost $889 billion from a November 2021 peak. This year, top-five US technology companies by revenue have witnessed about $4 trillion in market value.

Operating income decreased to $2.5 billion in the third quarter, compared with $4.9 billion in the third quarter of 2021. Net income decreased to $2.9 billion in the third quarter, or $0.28 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, in third quarter 2021.

Mark Zuckerberg, CEO of Facebook’s parent company Meta, on Wednesday also confirmed the layoffs by the company. He said the company has decided to reduce the size of its team by about 13 per cent and let more than 11,000 of employees go.

The layoffs are part of a plan to reduce costs at Meta following disappointing earnings and a drop in revenue. The staff reductions, part of the first major budget cut since the founding of Facebook in 2004, reflect a sharp slowdown in digital advertising revenue, an economy wobbling on the brink of recession and Zuckerberg’s heavy investment in a speculative virtual-reality push called the metaverse.

It came days after another social media giant Twitter, under the new ownership of Tesla CEO Elon Musk, let go of 50 per cent of its workforce to cut costs.

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