Amazon could announce sweeping layoffs as early as this week, according to The New York Times. The company reportedly plans to cut approximately 10,000 corporate employees, with staff at its consumer-facing devices division among those who are likely to be affected by the move. Amazon employs approximately 1.5 million people globally. If the company moves forward with the cuts as reported, they would affect about three percent of its corporate workforce and would represent the largest reorganization in Amazon’s nearly 30-year history.
Amazon did not immediately respond to Engadget’s request for comment. Mass layoffs have been a frequent occurrence in the US tech sector in recent weeks. On November 9th, Facebook parent company Meta cut about 13 percent of its workforce, a move that saw more than 11,000 people lose their jobs at the social media giant. Before that, Twitter was decimated after Elon Musk ordered a 50 percent reducation of the company’s headcount. Over the weekend, the company also let go of most of its contract workers. Smaller firms like Lyft and Snap have laid off employees in recent months as well.
For Amazon, the planned layoffs are reflective of the company's changing fortunes. Thanks to early pandemic lockdown measures, the retail giant experienced record growth and went on a hiring spree that saw its workforce double. In recent months, however, the company has seen growth slow due to a combination of mounting costs and the return of in-person shopping. The company recently posted a $2 billion loss and froze hiring at its corporate offices.