Amazon cuts 9,000 jobs in effort to boost profitability

Amazon announces plan to cut 9000 jobs amid changing market conditions

The massive online retailer Amazon plans to eliminate an additional 9,000 positions in an effort to reduce operating expenses.

The company, which has 1.5 million employees across the globe, announced that the majority of the layoffs would occur in departments such as cloud computing and advertising.

Amazon to reduce workforce by 9,000 as part of cost-cutting measures
Job cuts continue at Amazon, with 9,000 roles set to be eliminated

It did not specify which countries would be impacted; however, it did state that the posts will be terminated within the following few weeks.

Andy Jassy, the company’s boss, referred to it as a “tough decision,” but he believed that in the long run, it would be beneficial for the business.

Already in January, the company eliminated 18,000 positions from its workforce.

According to Mr Jassy, the majority of Amazon’s business divisions have been expanding their workforce in recent years.

“But, given the uncertain environment in which we inhabit and the uncertainty that exists in the near future, we have chosen to be more streamlined in both our costs and headcount,” he stated. “This is because of the unpredictability that exists in both the immediate past and the immediate future.”

Amazon saw a sales boom during the pandemic when many of its customers were confined to their homes due to the illness.

Nevertheless, lately, it has seen a slowdown in sales as customers spend less money as a direct result of the rising cost of living.

Other businesses, such as Google and Meta, the company that owns Facebook, have been struggling to find a solution that allows them to minimize costs while still maintaining their position in the market.

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The company Meta, which is also the owner of Instagram and WhatsApp, made the decision to eliminate 10,000 workers last week.

Losing employees is “never easy,” and Mr Jassy continued, “To those who will be most affected by these cutbacks, I want to thank you for the work that you have done on behalf of customers and the firm.”

Twitch, which is a live streaming platform for content such as video games and music, is another sector that may experience budget reductions.

It comes just a few days after Emmett Shear revealed that he will be stepping down as the chief executive officer of Twitch after serving in that capacity for the past 16 years.

In 2014, Amazon paid $1 billion (£1.5 billion) to acquire Twitch.

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